Freedom was established in 1879, and today it remains the oldest settlement in the Star Valley. Similar to Colorado City, Arizona and Hildale, Utah, the community was settled as a border town by Mormon polygamists in order to escape arrest for polygamy: they could be free from Idaho police simply by walking into Wyoming. The community was named for the freedom it gave these early settlers.
At one time, Freedom was the largest settlement in Star Valley. There was a general store, a gas station, billiard hall, and other establishments. Today some of the old buildings still stand, but very few are still in use. The Post Office and Baseball Park are still used, along with the LDS Church, which was built in 1889. Freedom is also the home of Freedom Arms, a gun factory and maker of the .454 Casull handgun.