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The first permanent settlers in present-day Hood River County filed a donation land claim in 1854. The first school was built in 1863 and a road from The Dalles was completed in 1867. By 1880 there were 17 families living in the valley. By the latter part of the nineteenth century farmers of Japanese, Finnish, German, and French ethnicity had settled in the valley.
At the turn of the twentieth century, the people of the Hood River region in the northwest portion of Wasco County expressed a desire for political separation from the parent county. The passage of a statewide initiative established Hood River as the thirty-fourth county of the state. It was made official by a governor's proclamation on June 23, 1908. The Columbia River Highway was completed in 1922 from Portland to The Dalles, improving access between both those cities as well as to Hood River.
In response to controversy surrounding county approval of locating a destination resort at Cooper Spur ski area on Mount Hood, on November 5, 2003, 62% of the voters approved a measure requiring voter approval on residential developments of 25 units or more on land zoned for forest use. Opponents claimed that this measure was not enforceable and would end up in court.