In the mid-1950's, housing development began in the foothills at the north end of Harrison Boulevard. The neighborhood grew quickly in this area, which had been known for years as Slaughterhouse Gulch. It had gained this moniker because a slaughterhouse had been located in the hilly area in the 30's and 40's. The name of the neighborhood was changed (thankfully) to the Highlands as the area grew.

Children from the area were first bused to Campus School, and then to Central School in the late 1950's. Construction began on the new Highlands Elementary in 1959, and the school opened for the 1961-62 school year. Like most schools built in this period of time, Highlands was constructed with a flat roof, twelve classrooms, a library, an office area and a multipurpose room. Unlike others built in this era, Highlands has remained as a small school serving the immediate neighborhood.