The town of Lloyd was founded in 1890 by an early day prospector named old man Lloyd just 13 years after the last battle of the Nez Pierce tribe and the surrender of Chief Joseph, 9 miles to the east. Lloyd has been in continuing existance since January 11, 1890. On that date the Post Office Department of the United States Government authorized the establishment of the Lloyd post office. At the turn of the century, Lloyd had a store, post office, saloon, hotel, livery stable and 2 or 3 black smith shops.
While mining was never of major importance in the Lloyd area, there was a flurry of mining excitement and some activity. There were prospectors in the mountains as early as 1890 and colors were often found by the hunters and trappers. All mining in the Bear Paws was illegal, because the land was on an Indian Reservation. However in 1878, "Old Man Lloyd", prospected the ridges between Snake and Peoples Creek. He uncovered a vein of argentiferous galena, staked a claim which he call "Black Diamond", and recorded the claim at Fort Benton. He sank a 60 foot shaft and found ore which ran 56-69% lead and some silver. During the summer of 1879, he left his helper at the mine and went to Fort Benton for supplies. When he returned he found the Indians had run his man off and were in possession of his claim. Only because he was skillful with a gun, was Lloyd able to save his own scalp. He did not return to his mine.
In those early days if a community felt the need of postal service it was necessary for them to prove this need by financing the carrying of the mail for a six month trial. This the people of the Snake Creek Valley did. The mail was brought from Chinook to the Pat Murphy home, present day Shipwheel Cattle Company. Here Mrs. Alice Murphy took care of it. People who received letters were expected to pay a dollar for each of them. Mrs. Murphy handled the mail until Dec. 1890 when the post office was moved to the Samuel T. Lamb ranch where Clara Lamb became postmistress.
In the summer of 1891, William L. Wilson who for some years had prospected, trapped, and hunted in the area built a store on upper Snake Creek at the present site of Lloyd. He became the postmaster in 1892 when the post office was moved to his store. Mr Wilson died of consumption at Lloyd in March 1893.
During these years there were also blackmith shops operating at Lloyd. Best remembered of the blacksmiths is Jack Clark who was there for many years. His shop was just north of and across the road from the Lloyd store.
One of the most pressing needs of a new community is a school. The first school session at Lloyd was held for three months in the summer of 1902 at the Frank Brechbill home with Miss Flagler as the teacher. In 1903, the community built a schoolhouse on land donated by L.B. Taylor. B.K. Lyons supervised the construction, in which all the neighborhood men took part. This building still stands on the Lloyd schoolgrounds, one-quarter mile from present day Lloyd.