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About Estacada, OR The Estacada post office opened in February 1904 and the city was incorporated in May 1905. The community formed as a camp for workers building a hydroelectric dam on the nearby Clackamas River that was to supply Portland with electricity. At the time, the river was relatively inaccessible by road, forcing the Oregon Power Railway Company to build a railway to the vicinity of the river to transport crews to the river for the construction of the dam. After the construction of the Hotel Estacada, the town became a weekend destination on the railroad line for residents of Portland. During the week, the train carried freight and work crews to and from Portland.
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