Rathwell was named for Jack Rathwell, who owned land in the vicinity in 1886 when the railway came through.

The Rathwell Snowmobile Poker Derby was started in 1974 as a fund-raiser for the volunteer Fire Department. It has operated since its inception on the first Sunday in March, and has operated 2 routes – one for the hardy and adventurous and more youthful to tackle – a twenty five mile trip north along the Assiniboine River and a more leisurely route for the less adventurous.