Silver Creek reportedly was named for James Smith, who was called "Silver" because he brought a quantity of silver dollars into the area. Smith and John Barger built a sawmill at Milford, two miles above Silverton about 1846.

A post office with the name Silver Creek was established Nov 16, 1854 with E.M. Waite as postmaster.

Approximately 15 miles SE of Silverton, one can visit Silver Creek Falls. This large state park features nine larger falls and five smaller falls within the park boundary. A community called Silver Falls City sprang up near the falls but it was discontinued after after a short time.