As Oregon City grew, it became apparent that some way had to be found to connect the old, lower level of town along the river with the upper level atop the bluff. Until the first stairs were built in the mid-1860s, people used old Indian trails to climb the bluff. The City Commission asked the voters to approve a $12,000 bond measure in 1912 "to construct and operate an Elevator from the lower to the upper town at some point to be selected." The measure failed when first put to the vote in July, but passed in a second referendum held on December 2, 1912. The elevator entered service almost exactly three years later, its construction held up by political maneuvering. It was originally powered by water, resulting in a three minute ride. In 1924, the elevator was changed over to electrical power, which reduced the ride to thirty seconds.

The elevator was so successful that most of the old wooden stairs up the bluff were removed. It served for 40 years, until a special election in May, 1952, authorized a $175,000 bond issue to build a new elevator. When the City Commission asked for bids on the project, they instructed the designers to build a structure "as plain as possible without adornment." The new elevator was dedicated on May 5, 1955, and the City Commission officially accepted it on July 13, 1955.