The land on which Springdale is located was homesteaded by Charles O. Squires in 1888, and the Spokane Falls & Northern Railway called their station Squires City when the railroad was built. Residents changed the name to its present form, as there are many subterranean streams in this part of the valley, some of which emerge as springs.

The city has never fully recovered from the devastating effects of a fire in 1908 which practically destroyed the town. The Farmers and Merchants Bank, a white, square, brick structure adjoining the post office and the Camas Valley Grange Hall, on the same street, are the most prominent buildings in the town.