Simon Fraser followed in 1805 and established a North West Company fur-trading outpost, the Rocky Mountain Portage House, at the foot of the canyon directly across the river from the current townsite.

[6] The HBC opened a new trading post on the southern river banks in 1866 to compete against free traders coming in from the west.

Much of the area was explored by prospectors and surveying crews as the Peace River Block was opened to mineral staking in 1908 and homestead claims in 1912.

A permanent settlement was established in 1912 by a police officer, who was previously stationed in Fort St. John, and a friend from Victoria, who staked the first homestead.

Others joined them as they travelled through Edmonton, Dunvegan, and Fort St. John to found the communities of Beryl Prairie and Lynx Creek.

Commercial coal mining, attempted in 1923, was not successful due to the isolation and high transportation costs to other markets.

Construction of the Alaska Highway in 1942 created a high local demand and stimulated commercial coal mining.

[9] Major development came to the rural area in the 1960s, when the provincial government planned and constructed the W. A. C. Bennett Dam and its associated Gordon M. Shrum Generating Station for hydroelectric power.

Its construction involved thousands of workers; the project was served by the distant highway and railway 85 km (53 mi) to the south at Chetwynd.

The town has remained geographically isolated and is economically dependent on BC Hydro as its single major employer.

The closest commercial airport, with regularly scheduled flights, is approximately 86 km (53 mi) to the east, near Fort St. John.

The town draws its drinking water from the Peace River, and chlorinates and distributes it through 15 km (9 mi) of watermains.

[29] The municipality funds weekly garbage collection from households in the townsite and transfer stations in the rural communities.

The community was founded as a trading post along a portage trail but with sternwheelers and steamships navigating the Peace River in the 1800s resource extraction, such as logging and farming, began.

[31] Northern Lights College offers courses at the Hudson's Hope Learning Centre that focus on the oil and gas industry, as well as adult basic, continuing, and vocational education.

The town maintains a library, skating arena, curling rink, and an outdoor heated swimming pool.

Annual events include a rodeo in June, a fall fair in August, and a torchlight parade in December.

Outside the townsite, the district helps maintain the Beryl Prairie Community Park, and Jamieson Woods Nature Preserve.

In a December 2, 2012 by-election, Gwen Johansson was elected as the mayor of Hudson's Hope, replacing Karen Anderson.

[36] Hudson's Hope is situated in the Peace River North provincial electoral district and is represented by Pat Pimm in the Legislative Assembly of British Columbia.

Federally, Hudson's Hope is located in the Prince George—Peace River riding, which is represented in the House of Commons by Conservative Party Member of Parliament Bob Zimmer.