 "Oregon Geographic Names" says that the William W. Mitchell Company started the town in 1919 and named it as a portmanteau of Valley and Siletz Railroad, whose terminus was at that location.Company town researcher Linda Carlson says the town was founded by the Cobbs & Mitchell company of Cadillac, Michigan during World War I. Valsetz post office was established in 1920.In 1947, Cobbs & Mitchell sold the town to its sales agent, Herbert Templeton.