The Great Western Trail traces its origins to the early 1900s, when irrigation systems transformed Northern Colorado into a productive agricultural region and fueled the rise of the sugar beet industry. In 1905, the Great Western Railroad constructed a 12.6-mile rail line between Eaton and Windsor to transport sugar beets from local farms to processing plants, supporting both freight and passenger service for decades. As transportation needs evolved, passenger service ended in 1972, and by 1977 sugar beets were being hauled by truck, leaving the rail line inactive. National efforts to preserve abandoned rail corridors gained momentum with the 1983 Rails to Trails Act, which introduced railbanking as a way to repurpose former rail lines for recreational use while preserving future rail potential. In 2004, the Eaton-to-Windsor corridor was officially railbanked, and public planning began for a multi-use trail.

The Great Western Trail Authority was formed in 2006 to guide development of the trail, with the towns of Eaton, Severance, and Windsor partnering through an intergovernmental agreement. Following legal clearance in 2007, construction began, and the first 2.5-mile segment opened in 2008. Over the following years, key infrastructure improvements—including trestle repairs, surface upgrades, and safety enhancements—were completed with support from local, state, and federal grants. Major funding in 2012 and again in 2020 allowed for significant trail expansions and connections to local schools and trail systems. Construction of the final segments concluded in August 2023, completing the full trail from Eaton to Windsor and transforming a historic railroad corridor into a fully connected regional recreational asset.