The townsite of Gibson is located 26 kilometres north of Esperance on the road between Esperance and Norseman. When it was proposed to construct a railway from Norseman to Esperance around 1910, the decision was made to create a townsite at "Gibson Soak". The railway was not built until the mid 1920s, the Esperance - Salmon Gums section opening in 1925. The townsite was gazetted in 1921. Gibson Soak was a reliable permanent water source first recorded by surveyor A.W.Canning in 1896, and named after "Billy Gibson" who came across the soak while searching for stock.