The community was founded in 1887 as Olax, but the original name conflicted with another Nebraska location, so it was renamed to Oconto. The exact source of the name has been debated, some hold Oconto was the name of a pioneer settler, while others believe the town was named after Oconto, Wisconsin. A 1925 edition is available for download at University of Nebraska—Lincoln Digital Commons. Oconto was incorporated in 1906.
