European-Canadians first settled the area around Russell around 1880. The first post office began operations at a site north of the present community in 1880, and was called "Shell River". The closest CPR point was renamed to Russell in 1889. It was named after Lord Alexander Russell. Also in 1889, a Dr Barnardo's Home for boys was established. The home and local farmers sponsored transportation for British orphans to come to the area to work on farms. Russell was officially incorporated as a town in 1913.
Industrial development
Recent changes to agriculture, such as the elimination of the Western Grain Transportation Subsidy, have put the region in a unique position. With one of the highest freight rates in western Canada, the Russell area is well-positioned to experience an explosion in value-added processing. Bunge Canada, an advanced canola-processing plant, is located at Harrowby, west of Russell. Nearby potash mining in Saskatchewan provides jobs for numerous Russell residents, as well as purchasing supplies and services locally. The first potash mine in Manitoba has been proposed for a site just southwest of Russell, but due to the greater depth of the potash and higher taxes versus Saskatchewan, progress has been stalled for the last 20 years. Russell and the surrounding rural municipalities are promoting tourism through the Asessippi Parkland Economic Development Corp.
Education
A semi-major service centre for the regional agricultural communities, Russell provides educational facilities ranging from day care and nursery, to post-secondary facilities. Russell is part of the Park West School Division. The Assiniboine Community College also has a regional campus located in Russell. The community has access to First Year Distant Education transmission, allowing individuals to take first-year education via internet.
Recreation
Recreational facilities include a serviced campground, tennis courts, ball fields, curling and hockey arenas, community halls, a swimming pool, snowboarding and downhill skiing, and a nine-hole golf course. Russell is located only from Asessippi Provincial Park, the site of Asessippi Ski Area & Resort—a world-class ski facility and year-round family park. The park also contains the Lake of the Prairies, a 64 km-long lake. In Manitoba the lake recorded an annual walleye catch per square kilometre that is five times greater than the provincial average.