The community was named after pioneer John Hobson, who was one of the founders of the local salmon cannery.[4] Hobsonville once had an economy based on lumber and the salmon cannery–the Tillamook Packing Company–which began operating in 1884.[5][6] Hobsonville also had a hotel and a creamery, and was a stop on the Tillamook Bay and Pacific Railway and Navigation Co. Railroad.[5] Hobsonville post office ran from 1883 to 1913.[4] According to Oregon: End of the Trail, nearby Hobsonville Point that extends into Tillamook Bay was named Talapus Cradle by the local Native Americans because of its resemblance to a cradleboard.[7][8] The point was also once known as Driscoll Point.[9]
By 1930, Hobsonville was the home of several elderly Tillamook and Nehalem women, who talked with May Edel, an assistant to anthropologist Franz Boas.[10] By 1940 the townsite was overgrown by alder trees but several buildings and the unoccupied hotel building remained.[7] Shortly before 1940 the remains of the Smith lumber mill were washed into the bay.[7][9]