Sugar City loves its reputation as a small rural town. Built with the sole purpose of supporting a sugar beet factory which was destroyed in the Teton Dam flood in 1976, the city is located just outside of Rexburg, ID. While there is not much in terms of shopping or lodging, visitors may take a step back in time at Ole's Cafe where they can enjoy tiny town society over burgers, fries and homemade shakes. Visit our partner website for more detailed information: Visit Idaho .