Metolius, Oregon, is a small community in Jefferson County. The town was originally founded in 1903 along the Metolius River, a tributary of Dechutes River. In 1911, Oregon Trunk Railroad built a depot and a servicing station in Metolius, and the town experienced a population boom. When Oregon Trunk Railroad closed in the late 1920s, the population declined. Today, Metolius is primarily a residential area, with most businesses located 4 miles northwest in Madras, OR.