Located in the San Francisco Valley, Reserve was named Upper San Francisco Plaza by its original Hispanic settlers in 1874. Apaches made frequent attacks on the community, which sit within Apache hunting lands. In the late 1870s Anglo settlers began arriving. They renamed Upper Frisco Plaza as Milligan's Plaza after a town merchant and saloon owner.
Lower San Francisco Plaza was the site of the legendary Frisco Shootout of Elfego Baca in 1884. The self-appointed deputy sheriff made a stand-off against a mob of Texas cowboys in Lower San Francisco Plaza in 1884, quickly gaining a reputation as the hero of the Frisco Shootout. Author Louis L'Amour included Upper San Francisco Plaza in his novel Conagher, calling it "The Plaza". The Tularosa River flows into the San Francisco River at Middle San Francisco Plaza.