The town of Otis was founded in 1886 by Major E. C. Moderwell of Salina, Kansas. The town was named for Major Moderwell's son, Otis, and the name was officially adopted by the Rush County Court in 1887. The Major also donated a plot of ground where the first grade school was built and the present school still stands. As the streets were laid out, some were named for children of the original founders. The site of the town was determined by the Missouri- Pacific Railroad as it was heading west into Rush County. The train depot and section house were built by the railroad and new business places were soon opened by new settlers. In 1902, a band was organized and composed of about thirty members. Concerts were given at picnics, town celebrations, and certain train arrivals and sendoffs.
The first two churches in Otis were the Trinity Lutheran and the Methodist. The Methodists first held their services in the school house until a church was built in 1895. The Lutheran Church was founded by settlers from the area of Russia under Prussian rule during the Prussian-Austro-Hungarian Wars. The June 1880 census lists these immigrant families who migrated from Russia in 1876 and settled in the Otis area founding the townsite of Shöntal, north of the present site of Otis.
Industry has played an important role in the development of the community. A cigar factory was built in Otis in 1911 and was in production for several years. It was rated as one of the best in Kansas. Natural gas was discovered in 1928 south of Otis and later 50 producing oil or gas wells brought income and activity to the community.
One of the most noted industries in this section of the country is the Otis Helium Plant. The huge plant was constructed to extract helium from natural gas. One of the largest of it's kind, it was originally constructed in 1943 by the United States government. An entire community was constructed south of Otis by the government to house plant workers. Today, a privately owned helium extraction plant, the second largest of its kind, operates near the community. The former government plant has been abandoned and only a few buildings remain at the site. Learn More.