New Market is named for the town near Cambridge, England though it was first named Jackson until its establishment in 1858. Elko was initially a railway village about the same time. Both Elko and New Market were common town names of the era according to the Minnesota Historical Society.
On March 21, 2006 both the cities of Elko and New Market passed a referendum to merge. The new city was named Elko New Market with the merger taking effect on January 1, 2007.