Another town developed by irrigation and promoted and named by Walter N. Granger, founded in 1892 and platted in the early 1900s. Rows of warehouses and packing sheds were strung along the railroad tracks paralleling the highway. Apples, cherries, and peaches were packed here, and the Mount Arbor Nursery maintains its Yakima Valley branch in Zillah. This branch no longer exists, though Soil Conditioners, Inc. provides organic fertilizers.
The Zillah Community Picnic was held annually in mid-June, and today is Zillah Community Days, held in mid May.