Europeans explored the coastline in the early 1600s but did not settle until 1812, when Russian fur traders came south from Alaska and built Fort Ross about 22 mi (40 km) northwest of Valley Ford. The Russians remained until 1841, when the area came under Mexican rule. In 1850, the year California became a U.S. state, the area was made part of Sonoma County.

Valley Ford had a grain mill in the mid 1800s. Starting in the 1870s, Valley Ford was a stop on the North Pacific Coast Railroad connecting Cazadero to the Sausalito ferry, enabling local ranchers and fishers to export produce to San Francisco.

Valley Ford is home to antique stores, art galleries, curio shops and restaurants.