It was settled in 1885 by Mormon pioneers from Kanab, Utah. The word "Fredonia" was coined by Samuel Latham Mitchill, combining "freedom" with a Latin ending. Mitchill proposed the name as a replacement for the United States. It failed in that regard but was adopted as the name of many towns and cities. According to George R. Stewart, the meaning of the Arizona town of Fredonia is sometimes said, falsely, to be the joining of English "free" and Spanish "doña", thus meaning "free woman", supposedly referring to polygamous Mormons (Stewart, pg. 173).

Fredonia works hand in hand with Kanab, Utah, 7 miles to the north, as a travelers' stop for those exploring the attractions of Southern Utah, the Arizona Strip (the area north of the Grand Canyon to the Utah border), and the North Rim of the Grand Canyon.

The North Rim area offers plenty of trails for hiking, biking, horseback riding, snowmobiling and cross-country skiing. Because the Arizona Strip is cut-off from the rest of Arizona, the crowds are much smaller and the atmosphere is more relaxed, than what is found at the Grand Canyon's South Rim area. With relatively easy access to Zion National Park, Bryce Canyon, Lake Powell, and the Grand Canyon, Fredonia also works well as a base for those exploring the area more thoroughly.