Hiko lies on Hwy 318, about 2 miles north of its junction with Hwy 93.

As early as 1865, a camp was established here and during the spring of 1866, W.H. Raymond and others laid out the townsite. Hiko is an Indian expression for "white man's town." Raymond purchased a five-stamp mill and had it shipped via the Colorado River to Callville and then hauled by oxen the 140 miles to this site. In November, 1866, milling began on Pahranagat ores and soon after, Hiko became the first county seat of Lincoln County in March 1867.

Raymond spent nearly $900,000 developing the region before the enterprise failed, realizing a return of only about $150,000. The lack of skilled labor available locally, and a freight hauling cost of 20-cents a pound since the nearest railroad hub was in Austin, a 165 miles away, contributed to the failed enterprize. The mill was moved to Bullionville in 1870 and consequently, Hiko declined in population and importance which accelerated following the removal of the county government to Pioche in February 1871.