According to the United States Census Bureau, the city has a total area of 0.48 square miles (1.24 km2), all land.

[5] This region experiences warm and dry summers, with no average monthly temperatures above 71.6 °F (22.0 °C).

In February 1911 the Oregon Trunk Railroad built a depot, turntable and roundhouse in the town.

Railroad engines at the time needed water at regular intervals, and Metolius was chosen as a servicing spot.

The town continued to prosper during the war years and by 1917, the population was over 1,700, and the town had two banks, two newspapers, a flour mill, hotels, general stores, hardware stores and a railroad maintenance hub.

As railroad technology improved, maintenance stations were required less frequently and the Metolius shop was eliminated.

An irrigation project diverting water from the Deschutes River boosted farming output and the town began to grow again.

[7] Water from the Deschutes river reaches the area through an extensive canal system.

A frozen French fry factory employed many workers year round.

In 1950 Metolius Elementary began to grow out of the 1913 high school building with a new gym and two classrooms.

In around 1963 the old high school was destroyed and the elementary was again expanded to include an office, a library and two more classrooms.

Non-union mills converting scrap wood from lumber operations hired many more Spanish-speaking workers from Mexico.

However, in late 2003, city leaders enlisted the help of U.S. Representative Greg Walden to reclaim the code.

Despite several attempts to start businesses, Metolius serves mainly as a bedroom community for Madras and other larger towns up to 40 miles (64 km) away.