Cherry Grove was founded by Swedish immigrant August Lovegren in 1911. He had previously operated a lumbermill in Preston, Washington, after arriving in the United States in 1883. He wanted a name for the community that was connected with fruit growing, but his choice of "Appleton" was already taken by a place in Oregon. His cousin then suggested the name of her home of Cherry Grove, Minnesota.
Lovegren established a sawmill in the community and in September 1911 began operating a private electricity grid in Cherry Grove.[4] He used the sawmill's boiler in the operation, and in September 1913 completed a dam on the Tualatin River to create a large log retention pond.[4] In January 1914, a flood destroyed both the dam and the boiler, leaving the community without electricity until Portland General Electric added service in 1935.[4] Cherry Grove's post office ran from 1912 through 1959 when service was transferred to Gaston.[5][6]