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Wood River takes its name from the tree-lined Wood River, a Platte tributary just north of town. The area served westbound emigrant traffic from around 1858, and the Union Pacific Railroad established a station in 1866 that prompted the original townsite to be platted there. In 1874-1875, the Union Pacific relocated its station about three miles east, and the town — including its post office and businesses — moved with it to its present site; only St. Mary's Cemetery and the District 5 School remain at the original 1866 townsite. Sitting on U.S. Route 30 about 3.5 miles north of the Platte River, Wood River is part of the Grand Island metropolitan area, roughly 14.5 miles southwest of Grand Island and 25.5 miles northeast of Kearney.
A Grand Island-area town named for the tree-lined Platte tributary running past it, relocated about three miles in 1874-1875 to follow the Union Pacific's new station.