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Hesler and Smith in their 1960 study of North American species of Lactarius defined L. indigo as the type species of subsection Caerulei, a group characterized by blue latex and a sticky, blue cap.
In 1958 Roger Heim described this fungus as Psilocybe wassonii, but without any Latin designation; Rolf Singer and Alexander Hanchett Smith described it in the same year as Psilocybe muliercula (muliercula = "little women").