Sprague was first settled by William Newman, who established an inn at the location.
Sprague was officially incorporated on November 28, 1883. Originally called Hoodooville after William Burrows, a local character called Hoodoo Billy, the name was changed to honor General John W. Sprague, a railroad executive.
Sprague was destroyed by fire on August 3, 1895. The fire and subsequent decision by the Northern Pacific Railroad to not rebuild in the town resulted in the relocation of the county seat, held by Sprague after an election in 1884, to Davenport in 1896 after a controversial vote.
Mary Queen of Heaven Catholic Church in Sprague, Washington was originally built in 1883. The current church was built in a Gothic Revival style and erected in 1902, just south of the site of the original church and blessed by the Bishop of Nesqually. It was placed on the National Register of Historic Places by the U.S. Department of Interior in 1990.
The peak population was in 1910 with 1,110 people.
The town has a seasonal creek running through it named "Negro Creek." Much debate has occurred regarding the creek's name but the name remains.
According to the United States Census Bureau, the city has a total area of 0.63 square miles, all of it land.
Sprague is located at 47°17′56″N 117°58′39″W (47.298974, -117.977532).