The valley is bounded on the north and south by the Selkirk Mountains, on the west by the Columbia River Basalt Group, and on the east by the Rathdrum Prairie at the Idaho state border.

The valley exhibits signs of the prehistoric geologic events that shaped the area and region such as the Missoula Floods which ended 12,000 to 15,000 years ago.

For thousands of years, native peoples lived in the Valley, and included it in their seasonal migrations, where they hunted, fished, gathered, and dug roots.

[11][12] In 1853, two years after the establishment of the Washington Territory, the first governor, Isaac Stevens, made an initial effort to make a treaty with Chief Garry and the Spokanes at Antoine Plantes' cabin.

[13][14] In spite of the calming influence of Chief Garry, the Spokanes protested the loss of their lands by joining in the Coeur d'Alene War of 1858.

A bridge to cross the river at Kendall's store was soon built by Joe Herring, Timothy Lee, and Ned Jordan in 1864, strategically located nearer the Mullan Road than Plante's Ferry.

In 1908, the state granted the formation of county townships as semi-autonomous, self-governing bodies, with the same basic governing rights as most municipalities, including the ability to levy property taxes.

Only Spokane and Whatcom counties took full advantage of these townships with taxing capabilities, essentially reducing the need to incorporate rural communities.

Though most Valley residents were farmers or orchardists, canneries, brickyards, railroad maintenance facilities and lumber mills provided jobs for many.

Tied to Spokane, local lakes and Coeur d’Alene by railroads and bus systems, the people of the Valley enjoyed a full life.

In the years that followed, crop troubles and irrigation system maintenance problems prompted many residents to sell their farms in five, ten, or 20-acre (81,000 m2) plots for suburban home sites.

The truck farms were successful in raising strawberries, raspberries, tomatoes, beans, peas, watermelons, asparagus, squash, cucumbers and thousands of acres of Heart of Gold cantaloupes.

A streetcar line was started as early as 1908, and later extended to Liberty Lake in the east part of the valley, where entertainment facilities were built for music and outdoor gatherings.

Industry began to replace agriculture more rapidly after the completion of Grand Coulee Dam in 1941, which combined cheap electricity with readily available water from the Spokane River and the extensive aquifer which underlies the Valley.

The first shopping mall was built at University Village on Sprague Avenue (formerly called Appleway), which became the major artery through the Valley, lined with stores and restaurants.

The last large-scale orchard irrigations ended in the late 1950s, canvas pipes running down residential streets replacing the old ditches by that time.

At the present time the Valley remains principally a suburban area, a mixture of families and retirees and the retail commerce to support them.