The presence of silver and copper has been known in the area around what is now Jerome since the Spanish colonial era when Arizona was part of New Spain. A mining town named Jerome was established on the side of Cleopatra Hill in 1883. It was named for Eugene Murray Jerome, a New York investor who owned the mineral rights and financed mining there. Eugene Jerome never visited his namesake town. Jerome was incorporated as a town on 8 March 1889. Local merchant and rancher William Munds was the first mayor. The town housed the workers in the nearby United Verde Mine, which was to produce over 1 billion dollars in copper, gold and silver over the next 70 years.
Jerome became a notorious "wild west" town, a hotbed of prostitution, gambling, and vice. On 5 February 1903, the New York Sun proclaimed Jerome to be "the wickedest town in the West". In 1915 the population of Jerome was estimated at 2,500.
Starting in May 1917 there was a series of miners strikes, in part organized by the Industrial Workers of the World. On 10 July of that year, armed agents of the mine owners roughly rounded up all the suspected labor union organizers and unionized miners, forced them on to railroad cattle cars, and shipped them out of town, letting them out on 12 July near Kingman, Arizona. They were warned to stay away from Jerome on threat of death. This event is known as the Jerome Deportation.
Jerome had three major fires between 1897 and 1899, burning out much of the town. The 1899 fire prompted Jerome to reincorporate as a city, and to adopt a building code specifying brick or masonry construction, as well as improving the fire companies. Despite these changes, the large and luxurious Montana Hotel, built of brick, burned in 1915. By 1929 Jerome's population was over 15,000 and Arizona had become the nation's leading copper producer.
By 1932 the price of copper had sunk to 5 cents per pound, and the United Verde closed until 1935, when Phelps Dodge bought the mine for $21 million. The United Verde and Jerome prospered in the war years, but the end was now in sight. Phelps Dodge closed the Clarkdale smelter in 1950. In 1953 the last of Jerome's mines closed, and much of the population left town. Jerome's population reached a low point of about 50 people in the late 1950s. In 1967 Jerome was designated a Historic District, and a National Historic Landmark in 1976, known as Jerome Historic District.
Today Jerome is a tourist destination, with many abandoned and refurbished buildings from its boom town days. Jerome has a large mining museum, presenting the town history, labor-management disputes, geological structure models, mineral samples, and equipment used in both underground and open-pit mining. The National Historic Landmark designation has assured architectural preservation in this town, a mile high on the side of Mingus Mountain.
Jerome is known as an art destination, with more than 30 galleries and working studios. First Saturday Art Walk began in 2006, and has become a popular monthly event. In 2007, Jerome became a sponsor of The Sedona Plein Air Festival, and hosted some of the best-known plein air painters in the country. The Old Jerome High School is home to many artists and their open studios. Artists and craftspeople display their work in an open-air art park in nice weather.