Atomic City was called "Midway" until 1950, as it is halfway between the towns of Blackfoot and Arco. The town had a larger population when the neighboring Idaho National Laboratory site was newer, known as the "National Reactor Testing Station" until 1975.
There is one store and one bar in Atomic City; the store no longer sells gasoline, due to new laws pertaining to its underground gas tanks. Most of the people who were raised in the town have now passed on, and many of the current residents are retired. There is an RV park on the south end of town with full hook-ups, and stock car races are held in the summer.