The City of Weed gets its name from the founder of the local lumber mill and pioneer Abner Weed. Weed discovered that the area's strong winds were helpful in drying lumber. In 1897, Weed bought the Siskiyou Lumber and Mercantile Mill and 280 acres of land which is now the City of Weed, for the sum of $400. By the 1940's Weed boasted the world's largest sawmill.
The City of Weed was originally a company town. It was incorporated as a General Law City in 1961.