[5] The community was relocated about 1⁄2 mile (0.80 km) northwest of the original site, on Route 22, and was incorporated as a city the same year.

Construction on the concrete Detroit Dam began on April 1, 1949, as part of the U.S. Army Corps of Engineers' Willamette Valley Project.

The completed dam was dedicated by former Oregon Governor Douglas McKay and the U. S. Secretary of the Interior on June 10, 1953.

In addition to flood control, the dam benefited navigation, irrigation, electric power production, stream purification and recreation.

The proposal was put forth by Doug DeGeorge, a builder and motel owner who resides in Arizona and wanted to disassociate the town from Detroit, Michigan, and its close ties to "crime, corruption, failing schools, and a shaky auto industry".

DeGeorge was not present on the day of the city council vote, but repercussions from his comments had phone lines flooded with angry calls from Michigan residents.

Voters chose to keep the original name of the city, though most residents and tourists still call it Detroit Lake.

[10] On September 9, 2020, the entire city of Detroit was mostly burned to the ground during the Santiam Fire.

[11] Dozens of people were trapped, but managed to escape on a forest road through the active fire.

[16] This region experiences warm (but not hot) and dry summers, with no average monthly temperatures above 71.6 °F (22.0 °C).