Settled along the line of the Chicago, Rock Island & Pacific Railroad, he town plat for the Mahaska County town of Rose Hill dates to September 6, 1875. At its peak, Rose Hill was home to two hotels, a lumberyard, grain elevator, tile factory, creamery, and a school. Many businesses folded during the Great Depression, while the grocery store closed its doors in 1966.

In 1993, the Rose Hill Ruritan-Community building went up in flames; it was quickly rebuilt and remains a popular place for area clubs and gatherings.