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Charles Putnam established a trading post on the site in 1861. It was later known as Putnam's and then Little Pine from Little Pine Creek. It is located across the street of the Inyo County Courthouse and is a California Historical Landmark #223.
Independence was the US Army Camp Independence, which was established on July 4, 1862, by Lieutenant Colonel George S. Evans. The camp was established by Colonel Evans at the request of local settlers, who were afraid of hostilities with the indigenous tribes. After the camp was closed, it was re-established in 1865 as Fort Independence. It was abandoned by the Fort Independence Indian Community of Paiute Indians in 1877.
Inyo County's seat became Independence in 1866 after its main competitor, Kearsarge (a mining camp) disappeared under an avalanche.
In 1866, Independence's first post office was opened.