The town of Vananda in northwestern Rosebud County emerged like many towns in Montana at the beginning of the 20th century – it began as a station stop in 1908 as the Milwaukee railroad constructed its line through Montana.

As the Milwaukee moved west, people followed on the hopes and dreams of homesteading. In 1921 the town had a three-story schoolhouse, a bank and the start of a bustling town. However, the town suffered the fate of so many railroad-based homestead towns. The tough arid land was difficult to successfully farm in 160-acre plots. In 1923 the bank closed and became the post office, operating until 1959. The railroad was abandoned in 1980.

The town is on the National Register of Historic Places. The bank building was purchased and moved to Forsyth. The large schoolhouse sits silently on the hill, a sign of the town's initial promise and hope.