The department as it is known today was formed in 1933 when the threat of higher fire insurance rates caused the town to call a special meeting on March 23, 1933. From that meeting, City Ordinance #5, Series 1933, was passed on May 1, 1933, creating the Newcastle Volunteer Fire Department. Section 4 provides for a chief and an assistant chief elected by the members of the fire department and certified by the mayor and city council. The first fire chief was Clarence Brill, along with assistant chief M.L. Hays.

The first fire truck was a 1935 Chevrolet purchased out of Denver, Colo. That truck still serves the City of Newcastle in parades and escorting Santa through town. The city built the current fire hall in 1979. Current membership allows for 50 volunteers on the department.