The area was first settled in the 1860s. Its settlers came primarily from Iowa and Germany. Monument first became a town in 1870 when Henry Limbach purchased 160 acres and registered as a town with the Colorado land office of the department of the interior.
In the early days monument was actually called Henry's station after Henry Limbach. When the Rio Grande railroad was built in 1871, the name was changed by Limbach and the railroad to Monument. This name was chosen because of the large monument rock situated at the base of Mount Herman. This rock can clearly be seen from the town.
The town of Monument has not forgotten its founder Henry Limbach, there is a park at the center of town bearing his name, Limbach Park.