Deusto was originally an elizate and also a municipality until 1925 when it was completely annexed by Bilbao in order to expand the free land available to the city.

It is known that the San Pedro de Deusto church was constructed some time around the 14th century and that until the 1700s the land was sparsely populated and the main economic activities were fishing and agricultural production, mostly wheat and vines.

Traditionally, the municipality was divided into two quarters: Erribera (riverside) located by the river, which concentrated the commercial and maritime activities of the village, and Goierri (highland) at the foothills of mount Artxanda, which included most of the farm land.

At the end of the 19th century the town enjoyed relative commercial prosperity thanks to the opening the railway line between Bilbao and Getxo, which included a station in Deusto.

A royal decree signed on 29 October 1924 established the annexation of Deusto to the city of Bilbao, effective on 1 January of the following year.

The rapid industrial development of Bilbao caused a massive migration of workers coming from elsewhere in Spain, and in consequence the creation of decadent shanty towns on the hills of the mount Banderas.

In 1968 a canal was excavated connecting to the estuary on its northwestern side, with the aim of relieving the vessel traffic on the river.

Politically and administratively, the district of Deusto is subdivided into four quarters (Basque: auzo), although it is common for locals to refer to even smaller subdivisions.

The university was founded in 1886 after the Jesuits moved their School of Higher Studies from Laguardia to its current location in Deusto.

Located in the Deustuibarra quarter is the main hospital of Igualatorio Médico Quirúrgico (IMQ), a private healthcare provider.

The district is serviced by the rapid transit system Metro Bilbao lines 1 and 2, with three stations: Deustu, Sarriko and San Ignazio.

The regional buses Bizkaibus serve several stops across the district, connecting to the main University of the Basque Country campus in Leioa and other cities on the right bank of the estuary.

The Deusto Canal is the district's main waterway after the estuary itself, separating the Erribera quarter into two sections; the riverside proper and the Zorrotzaurre island.

The canal was intended to relieve maritime traffic in the estuary by serving as docks for the industrial activities that then were common in the Deusto riverside.

The Deusto Bridge is the oldest, built in 1936 as a result of the necessity of directly connecting Abando with the districts annexed to Bilbao a decade earlier.

It is a viaduct connecting the Sagrado Corazón de Jesús square with the Deusto riverside, using the land formerly occupied by Euskalduna shipyards, hence the name.