The City of El Dorado Springs was incorporated on July 20, 1881.  Each year in July, on the weekend closest to the 20th, the town holds a Picnic in the downtown to celebrate the founding of the community.  It is believed that this celebration began in July 1882 and has been held every year since that first picnic.

The Picnic features a wide variety of children's games.  The games take place in the mornings in the Park.  Typical games include turtle races, sidewalk art, frog jump, hula-hoop contest, tennis shoe and water balloon toss.  There is also a lip-sync contest on Saturday afternoon.  On Thursday evening, there is a talent show contest.

The Picnic is more than just a celebration of the founding of El Dorado Springs.  It is a community event that brings the town together.  People that have moved away plan their vacations around that date.  During the Picnic, there are numerous high school classes that hold their reunions that weekend.  Everyone comes together for the largest social event of the year.