The region was settled in 1874, after the discovery of tin by the Krushka brothers. It was their mine (The Brothers Mine) that led to the economic development of the town. Originally called Brother's Home, it was renamed Derby in 1885, after Edward Smith-Stanley, 14th Earl of Derby and Prime Minister of the United Kingdom. Derby reached its peak in the late 19th century, when the mine was producing over 120 tons of tin per month and the population reached over 3,000. The railway line passing through Derby station operated from 1919 to 1992. The Dorset Hotel is now the town's premier pub.

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