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The junction of the Skeena and the Kitsumkalum Rivers was originally the site of a Tsimshian Indian Village. Fur trading and gold prospecting were the principal activities along the Pacific Shore, including the Skeena area from 1770 to 1900. In the early 1890's, a steamboat route was established up the Skeena as far as Hazelton and Tom Thornhill settled permanently near what is now known as "Little Canyon" on the south side of the Skeena.

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Terrace was once known as the cedar pole capital of the world.  Over 50,000 poles were manufactured annually to supply many parts of this continent with telephone and electric power poles. The world's tallest pole of 50 metres (162 feet) was cut in Terrace and is currently standing in New York City.

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Fishing is what attracts many to the Terrace area, with scenic waterways and five different types of BC salmon and Steelhead finding their way in the Skeena River if you are looking for a good fight. The world record Spring(King) salmon weighing in at 44.91 kg. (99 lbs.) was caught by a visiting German tourist.