Named for the native tribes indigenous to the area, Spokane ("children of the sun") began as a sawmill built by two squatters near the south bank of what is now Spokane Falls. While passing through the region, James N. Glover saw the potential in the land, so he purchased the sawmill and the claim. He purchased more of the surrounding property and invited families from Oregon to make the move north. However, due to the area's isolation and the threat of attacks from natives, Glover didn't get many takers.

In 1877, while at war with the Nez Perce natives, a contingent of soldiers from the U.S. Calvary spent the winter in the area and built Fort Coeur d'Alene. Encouraged by the military presence, settlers began flocking to the area. In 1881, the city of "Spokan Falls" was officially incorporated. The name was changed to Spokane in 1883, and the city became the seat of Spokane County in 1886. Even after the devastation of the Great Fire in 1889, Spokane continued to grow, thanks to the arrival of the Great Northern Railway. As it turns out, Spokane was located at one of the few points at which the Rocky Mountains could be safely crossed to reach the Columbian Basin. Spokane quickly became a major rail center.