In 1862 the first European settler came to Shaniko after the discovery of gold in Canyon City.

The route to Canyon City started at the early settlement of The Dalles, a little town190 miles away.
Wagon camps were made wherever water could be found.

Two camps were erected by settlers near the present-day Shaniko.

One of these settlers was August Scherneckau, who came to the area in 1874.
The spelling of Shaniko, originally called Cross Hollow, reflects local Native American pronunciation of Scherneckau’s name.

The town was established in May 1879 with Scherneckau as postmaster.

Today Shaniko is a Semi Ghost Town with approx. 35 inhabitans. There is a historic city hall an historic hotel and a wooden church.

In 2009 there was an open gas station.