Scotia was founded in 1863 as Forestville by the Pacific Lumber Company to house workers for its lumber industry operations in the area. The town was formed following the winter flood of 1861-1862; that flood level was not observed again until 1955. The Eel River crested at a gauge height of 72 feet (10.1 feet higher than 1955) on December 23, 1964. Eighteen-million board feet of redwood logs and 23-million board feet of lumber were washed out of the Scotia sawmill and scattered along the lower river and Pacific coast to the mouth of the Columbia River.