The early town was named Farewell Bend after a beautiful wooded area on a sweeping curve of the Deschutes River, where pioneer travelers had their last view of the river. The Post Office Department shortened it, but there was good reason for this nostalgic name. As westward-bound settlers approached, they found the first lush, green forests and good water they had seen in Oregon.

Tourists are attracted year-round to the region by its streams, lakes, mountains, great pine forests, ski slopes, and golf courses. There is also much of interest to geologists and rockhounds in this area. Movie and television producers often take advantage of the wild western scenery.

Two Ranger District offices of the Deschutes National Forest are located here.