Revelstoke was founded in 1880 (and incorporated in 1899) as a transportation and supply centre for the mining gold rush. This was bolstered by the construction of the Canadian Pacific Railway and the subsequent decision to establish its main operations offices and maintenance facilities for the Shuswap and Mountain Subdivisions in Revelstoke. This promoted the early establishment of the forest industry in the Revelstoke region as both the mining industry and railway construction required substantial amounts of timber.

 
 
The construction of the Trans-Canada Highway in 1962 further eased access to the Revelstoke region. Since then, tourism has been an important industry for the local economy.

Beginning in 1965, two hydroelectric dams were built. These mega projects fortified the economy of the city of Revelstoke.

Since 1986, the subsequent downturn following the completion of the dams was overcome through the development and implementation of a community economic development strategy. As of 2001, forestry, tourism and transportation are the major sources of income in the Revelstoke community.