Silverton is named from the fact that it is situated on Silver Creek. The first settlement was at a locality called Milford, where James Smith and John Barger established a sawmill about 1846. This was about two miles upstream from the present site of Silverton. The town dates from 1854, but the name did not come into use until 1855.

Polly Crandall Coon Price came to Oregon in 1852 to join her husband, who had arrived shortly before. Her husband died on Jan 10, 1854 before securing title to his donation land claim. Mrs. Coon remained on the land, secured title and sold town lots, naming the place Silverton.