This town was named for Mehama Smith, wife of James X. Smith, who laid out the townsite and who operated a ferry on North Santiam River in pioneer days. A post office with the name of Mehamah was established March 12, 1877, with John J. Blair first postmaster. The error was corrected, and the name of the office changed to Mehama on March 30, 1881. Lewis Stout ran a ferry at this place before Smith Ferry was put in operation. Mehama Smith died on Apirl 8, 1895.