Wuhai's history as a city began in the 1950s with the development of coal mines in the region. The area had been sparsely populated before the discovery of coal deposits attracted workers from across China. The city was formally established in 1976 through the merger of several mining settlements.
For decades, Wuhai was a typical Chinese industrial city, with coal mining and related industries dominating the economy. The environmental cost was high — air pollution, stripped landscapes, and a degraded river ecosystem.
The turning point came in the 2000s as coal reserves depleted and environmental awareness grew. The city embarked on an ambitious transformation plan. The Haibowan Dam project, completed in 2013, created Wuhai Lake and fundamentally changed the city's relationship with the Yellow River.
In the 2010s, Wuhai began developing its wine industry as part of economic diversification. Desert greening projects converted former mining areas into parks and vineyards. The city has since been recognized as a national model for resource-dependent city transformation.