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The Hohokam, ancestors to the O'odham people, once lived in the area that is now Florence. Before the founding of the town, the Gila River was part of the border between Mexico and the United States. The Gadsden Purchase, which was made in 1853, extended American territory south of the Gila.
Levi Ruggles, a veteran of the American Civil War founded Florence, on the south bank of the Gila River. As a U.S. Indian agent, he arrived in Arizona Territory in 1866. Recognizing the potential agricultural potential of the valley he discovered an easy crossing on the Gila River and surveyed a site there. Governor R.C. McCormick helped him to get a post office in August of the same year. Ruggles held many public offices, including Territorial Legislator. Florence was elected the county seat of the newly created Pinal County. The famous Silver King Mine was created after silver was found in nearby mountains in 1875.