Toroda became a town when gold and silver ore were discovered at Sheridan in 1897. Sheridan was high in the mountains where there were no roads, so the miners built their town along Toroda Creek. Toroda reached its peak in 1898 with a population of 470 people.
Deserted main street of Old Toroda around 1939. The price of silver dropped and the miners abandoned the town.
The mines did not prove to be rich as anticipated and the boom town was deserted. Toroda City soon became known as Old Toroda. A new town called Toroda was begun at the mouth of Toroda Creek on the Kettle River.
The name Toroda means "Dorothy" in a local Indian dialect. Both places were named after John Lute’s wife.