In 1845, Oregon Trail pioneer James B. Stephens laid claim to 640 acres (260 ha) across the Willamette River from the then-newly established Portland townsite.

[2] The land had been controlled by John McLoughlin of the Hudson's Bay Company,[3][4]: 2  and its location along the east bank of the river—with its marshes, creeks, and sloughs—made development challenging.

[5]: 3  Stephens established the Stark Street Ferry, whose paddle wheel was powered by a mule on a treadmill, to link the east and west sides of the river in 1848.

[6] On April 16, 1868, the Oregon Central Railroad broke ground at the settlement, which by then was being referred to as East Portland.

[7] Its railroad extended to Salem the following year and helped to start the development of an economy based on the shipment of agricultural products across the Willamette Valley.