Sparks was founded in 1904 when the Central Pacific Railroad built a new railroad there to replace Wadsworth as the big switching yard on this section of the Southern Pacific Railroad. The railroad offered employees 50 x 14 0 foot lots to build homes on and selling for just $1.00 per lot, the land went quickly. In a single day, the town of Sparks was born. Originally named Harriman after the railroad tycoon, Sparks was renamed after Nevada's fourth governor, John D. Sparks. At the time of this renaming, an anti-railroad rebellion boiled up in the legislature, eventually resulting in the creation of the Public Service Commission to regulate tariffs.

Sparks maintained a "clean cut" reputation from 1907 to the early 1950's when it rejected development of bars and casinos and the city council outlawed the popular local pastime of driving up to a saloon in a buggy and having drinks at the curb. Family oriented and hard-working, most early residents were employees of the railroad, and the little city of Sparks grew slowly with the railroad.

In 1955, an economic revival began when Dick Graves opened the Sparks Nugget restaurant chain. In 1958, John Ascuaga acquired the Nugget and a gaming license and gave Sparks its first skyscraper. Following this passing in to the era of casinos and bars , Sparks continued to strive to retain its neighborly atmosphere. As the Nugget brought more employees and their families to the area acres upon acres of land blossomed into one subdivision after another. This influx of residents continued as the 1970's helped Sparks begin to grow in a new and unexpected direction. Warehouses and small manufacturing plants began to move into the area and Sparks grew as a haven for industry. After the passing of the Freeport Bill in 1960, and the abundance of empty land, Sparks was an ideal spot for the transportation, manufacturing and warehousing industries. Still encouraging these types of facilities, Sparks has been able to prosper while retaining its pleasant and family oriented atmosphere. Now, Sparks has begun a $1.7 million revitalization program which has been recognized as the second best redevelopment in the state.