The town is named for its proximity to the river of the same name. The first white settlers came to the area in 1908. The first post office was opened in 1910 and named Redwillow since the name Beaverlodge had already been given to the post office at Lake Saskatoon. The name Redwillow is also taken from a nearby river. When the Edmonton, Dunvegan and British Columbia Railway arrived in 1928, the townsite was moved nearly two kilometres to the north-west of the original site and called Beaverlodge, at which time the original Beaverlodge post office was renamed Lake Saskatoon.

Approximately 36 km west of Grande Prairie.