The post office was established in 1851,[6] and the city was incorporated by the Oregon Legislative Assembly on October 17, 1878.

[6] According to the United States Census Bureau, the city has a total area of 0.90 square miles (2.33 km2), all of it land.

In 1900 a Yamhill River lock and dam was completed about 1.5 miles (2.4 km) downriver from Lafayette, Oregon.

There were 1,315 housing units at an average density of 1,461.1 per square mile (564.1/km2).

15.6% of all households were made up of individuals, and 4.5% had someone living alone who was 65 years of age or older.

There were 888 housing units at an average density of 985.5 per square mile (380.5/km2).

16.6% of all households were made up of individuals, and 4.8% had someone living alone who was 65 years of age or older.