In 1892, James J. Hill established the area formerly known as “Wild Horse Prairie” as a base for the Great Northern Railroad. The town was subsequently named “Hillyard” in his honor, marking the beginning of its transformation into a thriving working-class community.

Hill chose the location outside Spokane’s city limits to avoid high taxes, allowing the town to grow rapidly around the railroad industry.

By 1900, the Great Northern Railroad was the largest employer in Hillyard, with over 350 workers. The town gained recognition for its advanced locomotive construction, including the production of the R-1 Mallet and Engine No. 2034. The successful rail yard supported local businesses and helped the community to flourish. Celebrations like the Hillyard Hijinks (1934-1968) and Jim Hill Days (1970-) fostered a sense of pride and connection among residents.

In the 1950s, the Great Northern Railroad invested $1million to modernize Hillyard’s rail facilities, as it transitioned from steam to diesel locomotives. In 1954, a 40,000-square-foot diesel repair facility opened, handling 2,400 freight cars daily and employing over 1,300 people. This expansion provided steady jobs and bolstered the local economy, strengthening Hillyard’s identity as a railroad town and reinforcing its working-class character and industrious spirit.