However, the local Washoe tribe advocated for the removal of "squaw", a term previously used for Native women that is today considered an ethnic slur.

[16][17] The Washoe people inhabited the area around Lake Tahoe for thousands of years and used present-day Olympic Valley as a summer tribal ground.

[7] The town of Claraville, formerly located at the mouth of the valley, was once among the biggest mining operations in the Lake Tahoe region.

By 1942, Wayne Poulsen, a former star skier from the University of Nevada, had acquired 2,000 acres (810 ha) in the valley from the Southern Pacific Railroad.

[19] During his vacation, Cushing toured the valley at Poulsen's invitation and decided to invest in building a ski resort there.

Mail was postmarked "Squaw Village" to avoid confusion with the Fresno County community, where the department was studying reopening a post office.

Across the Nevada state line, the first terminal building of Hubbard Field in Reno was completed in time for the games.

[33][38] In 2016, Squaw Valley Ski Holdings submitted a final application for entitlements for its proposed Village at Squaw Valley Specific Plan, a $1 billion plan that prompted the Attorney General of California to write a letter of concern to Placer County.

[39] The plan would include 850 hotel and condominium units[40] and a 96-foot-tall “Mountain Adventure Camp” [41] featuring a year-round indoor waterpark.

[43] Sierra Watch, a California-based conservation advocacy group, started a grassroots campaign to “Keep Squaw True”, holding public events and circulating an on-line petition in opposition to KSL Capital Partners' proposed expansion plan.

[44][45] In November 2016, the Placer County Board of Supervisors approved KSL's controversial development proposal[46][47] in spite of opposition from local conservation organizations, including Sierra Watch.

[48] Sierra Watch filed suit to overturn those approvals for violating the California Environmental Quality Act (CEQA) in December 2016.

As of 2021[update], Olympic Valley has about 924 year-round residents but can swell to a maximum overnight population of about 6,573, including visitors.

[57] The Olympic Valley Municipal Advisory Council is an appointed body of local residents that advises the Placer County Board of Supervisors on land use, transportation, and other matters.

[58] The Olympic Valley Design Review Committee makes recommendations to the Placer County Planning Services Division on development proposals.

[61] Squaw Valley Ski Resort submitted a request to the Placer County LAFCO asking that it be excluded from the proposed town in April 2014.

[62] The Resort at Squaw Creek and Squaw Valley Lodge, two additional major businesses in the Olympic Valley area, submitted a letter to LAFCO in June 2014 urging the committee to deny the IOV incorporation application and to exclude them from the proposed town.

[63][64] In November 2015, the Placer County Local Agency Formation Commission announced that its members would vote against incorporation of Olympic Valley.