[5] The origin of the name Osoyoos was the word sw̓iw̓s (pronounced "soo-yoos") meaning "narrowing of the waters" in the local Okanagan language (Syilx'tsn).

[8][9] Another 2,139 people live around the town within Electoral Area A of the Regional District of Okanagan-Similkameen, and 1,426 more in the Osoyoos 1 Indian Reserve.

After the Hudson's Bay Company took over the fur trade in 1821, the Okanagan Valley became a major trade route for supplies to inland forts of British Columbia and furs that were shipped south to the Columbia River and the Pacific to European and Asian markets.

The final Hudson's Bay Company brigade in 1860 was the end of an era, as gold rushes transformed the economy of the new Colony of British Columbia.

The Crowsnest headed east begins with an 18 km (11 mi) switchback up the flank of the Okanagan Highland with a 685 m (2,247 ft) rise to the mining and ranching region of Anarchist Mountain, which is part of the Boundary Country (the stretch of rising highway is also referred to as Anarchist Mountain).

The Canada–United States border is located 4 km (2.5 mi) south of the Highway 3 and 97 intersection on the northwest side of town.

The far southern reaches of the Okanagan and Similkameen Valleys are part of a threatened xeric shrubland ecosystem in Canada known as the Columbia Plateau ecoregion.

This ecosystem was once more prevalent in the South Okanagan but is now becoming fragmented and degraded due to the spread of agriculture, urban development, and other human activities.

Winters are short and mild by Canadian standards, and usually dry, but can be cold for brief periods during Arctic outflow conditions bringing sporadic snowfall.

Average number of days:[21] Although the fruit-growing possibilities were noticed by early settlers, the first commercial orchard in the area was not established until 1907, growing cherries, apricots, nectarines, peaches, plums, pears and apples.

[2] Osoyoos Orchard Limited was formed in 1920 and an irrigation project was planned which finally brought water to the west bench via "The Ditch" in 1927.

[2] The former shrub-steppe environment was transformed into a lush agricultural belt and Osoyoos promoted "the earliest fruit in Canada".

Aside from tourism, agriculture is a major component of the local economy, as is evident by the abundant produce stands along Highways 3 and 97, and the numerous commercial orchards surrounding the town.

With the growing popularity of viticulture, some of these orchards are being converted to vineyards, as the area is a major wine-producing region of Canada.