Situated on the Atchison, Topeka & Santa Fe Railroad, the town company acquired the land from the railroad for $832 and laid out a townsite consisting of two city blocks. The name Rozel was chosen in honor of the daughter of one of the founders of the Land Company whose name was Rozella. A post office was established on June 15, 1893.
At the turn of the century, the town boasted a bank, a mill, a grain elevator, a number of retail stores, telegraph and express offices, and a money order post office. The population in 1910 was about 200.
Today, the town has just about 160 people. However, it still supports a post office and the Pawnee Heights School District for area students of all grades.