Rapelje was developed as a dry land farm town during the homestead boom of 1910-1930s. However, it was able to sustain itself as a trade center for outlying homesteads because of its location at the end of the line for the Northern Pacific Railroad. Rapelje was named after the general manager and vice president of the Northern Pacific, J. M. Rapelje.
Rapelje is located in southcentral area of Montana, on Highway 306 north of Columbus.