The club was founded in 1995 in Kusatsu town, one of the most well-known spa resorts in Japan, in 1995 as Liaison Kusatsu Football Club. The players were the students of specialized training college Higashi Nihon Soccer Academy. When the school was closed in 1999 due to financial difficulties, the players decided to stay in Kusatsu and keep the club alive. In 2002, the club was incorporated as K.K. Kusatsu Onsen Football Club with a future promotion to J. League in mind and adopted new team name Thespa Kusatsu(ザスパ草津,zasupa kusatsu?), which name basically meant "The Spa, Kusatsu.".
From 1 February 2013, the club has adopted the new name as "Thespakusatsu Gunma", to give out the impression of the club as representative of entire Gunma Prefecture, while still leaving the name of "Kusatsu" in it, as well as the logo of the club as is.