The first Russian American Company fur trading post on the Yukon River was established here in 1837. The settlement was recorded as an Eskimo village called "Ikogmiut," meaning "people of the point," in 1842 by the Russian explorer Zagoskin. The first Russian Orthodox mission in Interior Alaska was established here in 1857 by the Russian-Aleut priest Jacob Netzuetov. The mission was called "Pokrovskaya Mission," and the village name was changed to Russian Mission in 1900. It was often confused with another village on the Kuskokwim called "Russian Mission." This village was renamed Chuathbaluk. The City was incorporated in 1970.
A federally recognized tribe is located in the community -- the Iqurmiut Tribe. 93.9% of the population are Alaska Native or part Native. Russian Mission is a Yup'ik Eskimo village. Subsistence is the focus of the culture. The sale or importation of alcohol is banned in the village.

During the 2000 U.S. Census, there were 81 total housing units, and 11 were vacant. 4 of these vacant housing units are used only seasonally. 83 residents were employed. The unemployment rate at that time was 21.7%, although 52.84% of all adults were not in the work force. The median household income was $27,500, per capita income was $8,358, and 21.77% of residents were living below the poverty level.

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