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Clitherall was founded in 1864 by members of the Church of Jesus Christ ( Cutlerite ), a small Latter Day Saint faction started in 1853 by Alpheus Cutler, a former associate of Joseph Smith, Jr., founder of the original Latter Day Saint church in 1830.
This group relocated to the area from Manti, Iowa following Cutler's death in 1864, and included Cutler's widow, Lois.
Although the area had been ravaged by the Sioux uprising of 1862 and wasn't considered safe for settlement, the Cutlerites got along well with the local Native Americans and the town thrived for several years.

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