Peoria, named for Peoria, Illinois, was first settled in 1851 by H. A. McCartney. By 1875, the community was prosperous enough to have four grain warehouses and a school with 60 pupils. However, after the Oregon and California Railroad established a line through Shedd and Halsey further east, business in Peoria declined.[6]
A post office in this vicinity opened in 1855 under the name "Burlington". The name was changed to "Peoria" in 1857, and the office closed in 1900.[6] Through the early decades of the 20th century, a river ferry operated out of Peoria.[7]