First Nations and early explorers The
Kitsumkalum and
Kitselas, who have inhabited the area for about 6,000 years, traded with other villages along the Skeena. From the 1780s, European and Russian fur traders passed through. From the mid-1800s, the forestry, mining and salmon resources drew new settlers. The
Kitsumkalum First Nation own the
Kitsumkaylum Indian Reserve No. 1 which is immediately west of Kitsumkalum River. The
Tsimshian word for Terrace is ganeexs (meaning "ladder" or "steps"), likely a reference to the stepped terraces of the surrounding landscape.
Steamboat era The first
sternwheeler to attempt the Skeena was the
Union in 1865, which transported supplies for the construction of the
Collins Overland Telegraph line. The
Mumford, which was the replacement the next year, may have reached upstream on the Skeena from the Kitsumkalum mouth (Terrace), but travel beyond the mouth may have been by canoe only. Over the following decades, river traffic increased. Settlements and woodpile fuel stops developed along the riverbanks. In 1912, the only two sternwheelers remaining on the Skeena were the
Hudson's Bay Company's (HBC)
Port Simpson and the chartered
Foley, Welch and Stewart (FW&S)
Inlander, which the Skeena segment of the railway made redundant that year. Inaugurated in 1970, the Riverboat Days festival held each summer acknowledges this
steamboat heritage.
Pioneer settlers In 1892,
Tom Thornhill was the first European settler in the area, establishing a homestead on what became Thornhill Landing and is remembered in the naming of
Thornhill and the creek. Formerly, the general area was known as Little Canyon. named such to identify as not being the big canyon. In 1898, George Little journeyed west from Ontario for the
Klondike Gold Rush. He left the Yukon in 1905 and landed at
Kitimat, from where he came north to the Skeena. That year, he
pre-empted centred around the foot of present Kalum Street. Harry Frank, who had taken up the first pre-emption in the district that year, In 1912, the hotel and store at the landing closed and were demolished. Designated a national historic site in 1996, the cemetery was established in 1909. That year, George Little began sawmilling in the area. The next year, he opened a general store and of the Terrace location name was September 1911. George Little was the inaugural postmaster 1912–1931. Since a Lyttleton post office existed in
New Brunswick, the postal authorities demanded a new name. George chose Terrace during the GTP construction. Designated a national historic site in 2006, some accounts indicate the former
British Columbia Provincial Police (BCPP) building on the Lakelse Ave / Kalum Street corner was erected in 1912. However, 1913 appears more precise. That year, Knox Presbyterian Church and St. Matthews Anglican Church were also built and a co-op store established. A Roman Catholic church was dedicated in 1915 but was replaced by a new building at a different location in 1917. Terrace Drugs opened next to the Terrace Hotel around 1918. The next year, a branch of the
Bank of Montreal arrived. In 1921, the legion hall was built. The next year, the liquor store opened and the co-op closed. In December 1927, Terrace was incorporated as a village. In early 1931, fire destroyed the Agar's Garage and months later the power plant, putting the town in darkness. That year, Fred Bishop built a 100-seat theatre to show
silent movies. He had been using the Oddfellows Hall since 1923. In 1933, he relocated and his theatre closed. Restored in early 1932, the electricity generating plant was again destroyed by fire late the following year. Agar's Garage was also badly damaged at this time. A lengthy delay occurred before power was restored. During the mid-1930s to mid-1940s, Terrace had no bank after the Bank of Montreal closed. In 1938, the government liquor store and government telegraph office were destroyed by fire. The next year, heavy snow collapsed the legion hall roof. In 1942, a military camp was constructed which would house about 3,000 soldiers during
World War II. In 1943, Charlie Adam built a theatre to entertain the troops and highway workers. and a new co-op store opened. In 1945, fire destroyed the village power plant, and the
BC Power Commission took over the electricity supply the following month.
Post-World War II community In 1946, a surplus
Royal Canadian Air Force (RCAF) appliance became the first village fire truck. That year, a branch of the
Royal Bank of Canada (RBC) opened. In 1949, Knox United Church burned down. In 1950, the rebuilt Knox United Church opened. In 1958, a new civic centre was built in George Little Park. From 1958 to the late 1970s, the Tillicum Drive-in existed. St. Matthews Anglican Church building was relocated within town in the late 1950s and to the
Gitanyow Reserve in 1971. In 1960, the
BC Hydro electricity supply switched from a local diesel plant to transmission lines from the
Kemano Generating Station. In 1964, the present municipal building opened. About this time, the Anglicans bought the Dutch Reformed building when that congregation relocated. In 1965, the Knox United Church building was moved to the present site, enlarged, and dedicated the next year. In 1967, the present Terrace Public Library and Museum building opened. Bill Young, who took over the movie venues that year, added a second indoor theatre in 1974. Opening the next year were the new six-storey Terrace Hotel and the Terrace Arena (since renamed Terrace Sportsplex). In 1978, the Skeena Mall opened. The former Roman Catholic Church had been located in what became the parking lot. Established in 1983, the Terrace Heritage Park Museum was designated a national historic site in 1996. Terrace incorporated as a district municipality in January 1987.
Later community In 2003, a time capsule was buried in Heritage Park to be opened in 2078. The next year, the
Walmart store opened. In 2005, the
SAAN store, present in Terrace since 1979, closed. The city bought the co-op property in 2005, and demolished the shopping centre structure in 2011 and former garden centre in 2022. In 2007, Phase I of the Terrace Sportsplex, which included a new ice arena, was completed. In 2010, Terrace hosted the
BC Winter Games. In 2017, fire destroyed the building which housed the original Bank of Montreal branch. ==Geography==