The name Trout River came from the abundance of sea-running trout in the river at the time it was settled. The fishing community is located at the mouth of scenic Trout River. The community occupies a flood plain and a beach terrace. The terrace is about 100 ft above the river valley and has a good layer of soil as a result of enrichment with caplin. Trout River is located within the distinctively coloured Tablelands consisting of rocks thrust up from the earth's crust below the Atlantic Ocean and discoloured by weathering and erosion. The first settler was George Crocker who arrived from Liverpool, England in 1815 and settled in the sandy bay between the high cliffs. He had a wife named Catherine Blanchard from Dorchester, England.

In the early days, codfish was the most important fish species with a number of lobster factories also operating. Farming was also quite important.