As with many communities in south-eastern British Columbia, Revelstoke began in the 1880s as a transportation and supply center for the mining industry. This was soon bolstered by the construction of the trans-continental railway and the subsequent decision of the Canadian Pacific railway to establish its main operations offices and maintenance facilities for the Shuswap and Mountain Subdivisions in Revelstoke. Both the mining industry and railway construction required substantial amounts of timber which prompted the early establishment and growth of the timber industry in the area.

From 1900 until the early 1960s, Revelstoke grew at a gradual steady pace. Construction of the Trans Canada Highway through Rogers Pass in 1962 opened the area to tourism. Rapid growth to service tourism took place and the economy was further diversified.

Beginning in 1965, three hydroelectric dams which created large reservoirs were built in the area. While these mega-projects fortified the economy of the city, they also flooded agricultural lands and vast expanses of prime forest lands, reducing the timber and natural environmental resources of the area. When the mega-project boom ended in 1985, the town experienced a significant downturn. This downturn was admirably overcome through the development and implementation of a community economic development strategy which included: a downtown revitalization project; development and diversification of small businesses; encouragement of tourism; and, strengthening of the timber industry.

The economy of Revelstoke is tied directly to its geographic location, physical environment and the natural resources of the region. The forest industry, transportation (primarily rail), tourism and government services all contribute significantly to the community's economic health. Other resources available for development include water and minerals.

The forest industry accounts for 24.1% of basic employment in Revelstoke. The forest industry is defined as including logging, hauling, primary and secondary processing, consulting and silviculture activities.

Transportation, both rail and highway, continue to be significant employment generators.

The growth and development of the tourism and hospitality sector over the past thirty years have contributed to the diversification of the local economy. This sector provides 23.1% of Revelstoke's base employment. The natural environment; summer and winter recreational activities; history and heritage of the area; and, location on major transportation routes; provide opportunities for further significant tourism development.

Revelstoke is the service center for a large geographic region and accordingly public services and government offices are located in the city and the employment generated contributes significantly to the economic base.

The water resources of the area have provided employment through construction of dams and continue to provide employment at the electrical generating facilities. The quality of water in the area offers opportunities for export while the waterways can be developed for transportation and tourism.

The Selkirk and Monashee Mountains are highly mineralized and in the past a number of ore deposits have been developed as mines. Mineral exploration continues to be actively pursued in the region.