The community was originally known as Huffs Gulch when J. Wesley Seat homesteaded in the area in 1885.

Vollmer gained much of his 30,000 acres (47 sq mi; 120 km2) of land by foreclosing on the bank loans of local farmers.

Local legend states that the name Troy was selected when a Greek railroad worker offered free shots of whiskey to any who would support the name.

[4] According to the United States Census Bureau, the city has a total area of 0.79 square miles (2.05 km2), all of it land.

[5] As of the census[8] estimates of 2020, Troy had a population of 895 people (53 of which are recognized military veterans)(an observed 12.2% increase since 2000) and 321 housing units in the city's boundaries.

The racial makeup of the city was 96.12% White, 0.50% Native American, 0.38% Asian, and 3.01% from two or more races.

[11] The Trojans compete in athletics in the White Pine League in IHSAA Class 1A (Div I).

It meets the Paradise Path in Moscow, which continues west as the Bill Chipman Palouse Trail to Pullman alongside Highway 270; the total length of the three trails from Troy to Pullman is 22 miles (35 km).

John H. Hays – Medal of Honor recipient and town marshal killed in action in 1904.