The hamlet is located in census divisionNo. 9. It was first settled in 1905 and the local post office had the name Horseguards. (Horseguards Creek is nearby.)[3]
It was re-named Alhambra when the railroad arrived in 1914.[4] The community takes its name from Alhambra, in Grenada, Spain, as an attempt to share some of that place's glory.[5]