The town name was derived from the deposits of logs made by lumbermen, prior to forming rafts to float down the river usually to Philadelphia. The Town of Deposit was organized in 1880. In the 1890s, Deposit was a center of publishing with the relocating of the Outing Publishing Company in the town (from New York). Several magazines, including The Bohemian Magazine were published and printed from Deposit. The Outing Publishing Company went out of business a few years after the failure of the Knapp Bros. Bank in 1909. Charles J. Knapp was President of Outing and on the board of Knapp Brothers which was run by his nephew Charles P. Knapp.