The town of Derby was established in 1874 after George Renison Bell discovered tin in the area. It had previously been surveyed by James Scott in 1855 but it was only following the discovery of the metal that people began to move into the valley. The future of Derby was guranteed when the 'Brothers Mine' (named after the Krushka brothers who found the particular tin lode) opened in 1876. Following the construction of a dam, the mine continued to produce tin until 1948.
The name of the town was changed to Derby in 1897 (probably to honour the then Prime Minister of England, the Earl of Derby), although it was originally called Brother's Home, after the mine and the Krushka brothers .
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