Thompson Falls is a city in and the county seat of Sanders County, Montana. The population was 1,336 at the time of the 2020 census. …Thompson Falls is a city in and the county seat of Sanders County, Montana. The population was 1,336 at the time of the 2020 census. Thompson Falls was named after British explorer, geographer and fur trader David Thompson, who founded a North West Company fur trading post called Saleesh House in 1809. The community is located next to natural waterfalls on the Clark Fork river. The settlement of the Oregon Boundary Dispute in 1846, ended joint occupancy with Britain and established the border with British North America and made the region firmly American. The arrival of the railroad in 1881 brought the first real activity to the area. Two years later, when the gold rush hit nearby Cœur d'Alene, the town grew to accommodate the men going over the Murray Trail to the mines. In 1885 John Russell bought 40 acres and plotted the town site.
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