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In 1860, the US post office in Susanville was founded. Susanville was established in 1900.
Susanville was once the center for farming, mining, and the lumber business. However, Susanville has suffered the loss of many jobs since the decline or expansion of these industries in the 20th Century. The construction and operation in the area of one federal prison and two state prisons have been the only source of economic growth since the end of the 20th century. Half of Susanville's adult population worked in prisons in 2007. These were the California Correctional Center (a minimum-medium security facility) which opened in 1963, the High Desert State Prison in California which opened in 1995, and the Federal Correctional Institution Herlong which opened in 2007.