Lebanon sits beside the South Santiam River on the eastern edge of the Willamette Valley, close to the Cascade Range and a 25-minute drive to either of the larger cities of Corvallis and Albany.

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

It is also home to the private East Linn Christian Academy, which serves students from preschool through twelfth grade (PreK-12).

A village grew up around the store, and in 1855 the couple filed a plat for the town, naming it for Jeremiah's birthplace of Lebanon, Tennessee.

Like other Kalapuya tribes, the Santiam had dwindled in number, from malaria and other diseases, before the Americans arrived.

In 1855, the band sold the U.S. government their rights to the land and moved to a temporary reservation on a claim belonging to the Ralstons' son, just south of their own.

In 1859, local men in search of a way to drive cattle to central Oregon discovered the Santiam Pass.

Transportation was often easier by water than land in the early decades of American settlement in the Willamette Valley.

The South Santiam River was too shallow for large boats, so in 1872 construction began on a canal to carry barges laden with goods between Lebanon and Albany.

Today, however, the canal is still in use, running through Lebanon backyards to provide water for the people of Albany.

Eastern Oregon came to dominate in wheat growing, but Lebanon-area farmers produced orchard fruits, berries, walnuts, filberts, hops, flax, vegetables, forage crops, turkeys, mohair, honey, and flowers for florists.

Lebanon had a cheese factory, a creamery, potato warehouses, a cannery, and prune and nut driers.

The local wood-products industry began to grow around 1900, which the supply of timber in the upper Midwest declined.

World War II increased the demand for plywood, and women took men's places in the mill.

As overharvesting in the nearby forests made timber extraction more expensive, the mills began closing.

The city has 15 developed parks, totaling 71.5 acres (28.9 ha), which provide residents with baseball, softball, and soccer fields, as well as playgrounds, basketball and tennis courts, and other resources.

Gills Landing has a boat ramp and dock, as well as an RV park, camping area, and showers.