The Grande Ronde River once flowed around this community, creating an island some eight miles in length by one to one-and-one-half miles wide. The town began in 1872 as a business center dedicated to the production of flour. The course of the river was later redirected, eliminating the island, but not the name. Island City was incorporated, the document of incorporation being signed by then President Ulysses S. Grant.
Island City has attracted many businesses that serve the entire region. Several large chain stores have located along the Island City Strip -- a section of Highway 82 running from La Grande through Island City. This extended retail district merges the two communities so that one begins where the other ends.
Island City is home to the La Grande Country Club, which offers a maturely landscaped, nine-hole golf course, tennis courts and club house.
