As a result of the United States Army coming into the Salt Lake Valley in 1858, Spanish Fork became the temporary home of about four hundred families who had fled from their homes in northern settlements. Many of the refugees remained in Spanish Fork. The first commercial industry, a sawmill, was established in 1858 and was owned by Archibald Gardner. He also built the first flour mill, which began operation in 1859. The Spanish Fork Foundry, established in 1884, turned out great quantities of iron and brass castings. While the principal industry of Spanish Fork has always been agriculture, the city has also become a primary livestock center. The canning industry was also important; in 1925, the Utah Packing Corporation established a factory and began to contract with local farmers for the growing of peas, beans, and tomatoes.

As the population increased and more land was brought under cultivation, the waters of Spanish Fork River became inadequate to supply irrigation needs. After lengthy negotiations and contracts with the federal government, Spanish Fork secured the delivery of water from the newly completed Strawberry Reservoir. Water was first received through the tunnel on 27 June 1915.