Diller was founded on the western edge of the Otoe Indian Reservation, along the Oregon Trail, within 20 miles of the first National Homestead, and 6 miles from Rock Creek Pony Express Station. As the land opened up for settlement a group of Germans from Pennsylvania settled the area and in 1880 the town was platted and recorded. It was named after Samuel Diller, one of the first settlers in the area, who lived just north of the town site.

The following is an excerpt taken from the April, 1956 edition of the Norris Electric News, written by Mrs. Scott Miller (February 6, 1898-August 19, 1987) Diller, Nebraska.

Just a few miles to the north and off the beaten track of the Old Oregon Trail in southeastern Jefferson, County, Nebraska, snuggled along the north bank of Indian Creek, so named because this land was once a part of the old Otoe and Missouri Indian Reservation, lies the village of Diller, Nebraska.

The building of the Burlington railroad through there in 1880  was the occasion for the starting of the town. Construction of the railroad was from west to east-Oxford to Wymore and towns were located about every nine miles. Land on which Diller now stands was donated for a town-site by the Lincoln Land Company, David R. Kelley and Patrick Lavelle, Agents.

According to a letter written in 1910 by David Kelley to J.S. Diller, Washington, D.C., son of Samuel Diller, for whom the town was named, the birth and naming of the town occurred as follows: "In regards to the town of Diller will state that the deed was made October 13, 1880 and as near as I can remember it was plotted and surveyed October 1, 1880 by myself and R.O. Phillips and A.B. Smith, townsite surveyor and conditions as to how it came to be called Diller, I will tell you that I am the man that named the town of Diller after your father, Uncle Samuel Diller, as I called him and I will give you the parties present at the time, some of the talk and the grounds on which it was named. The following persons went with me over the grounds and I giving the townsmen 80 acres, or 1/2 interest in 160 acres, they located the village here instead of at Upsons (Upsons Corner) 4 miles east.

We crossed Indian 'creek' south of town. Mr. R.O. Phillips said, "Well, here we located the village of Kelleyville" and I said "We will call it Diller". He asked my reasons and I told him that Uncle Samuel Diller was a nice old gentlemen. The group drank to the "prosperity of the new town of Diller" on the bank of the Indian Creek south of town on the road running to F.D. Darris place.

Now the names of the men present: A.E. Touzelin, President of the B.M.R.R.; Tobias Castor, Chief Right-of-way man; J.H. Hardy, Assistant Right-of-way man; J.D. McFarland B and M commissioner; R.O. Philips, Secretary and Treasurer, Townsite Company; A. B. Smith, Townsite Surveyor; and your servant. D.R. Kelley, Father of the Town, Respectfully yours, D. R. Kelley."

We are grateful to Robert Diller, Chicago attorney and great grandson of Samuel Diller for the use of this letter.

According to records, however, in the Jefferson County courthouse at Fairbury, the instrument of deed was dated Novermber 8, 1880. Since a towns birth is said to be dated by the filing of the deed. Diller was officially 75 years of age as of last November (1955).

Diller duly celebrated the momentous event with a Diamond Jubilee held in conjunction with its 59th Annual Homecoming picnic, July 29 and 30, 1955.

A pageant "Echoes of Indian Creek" written by the author of this article, depicting the history of Diller, in story, song and dance, through the 75 years of its existence, was presented in 25 scenes with a local cast of 373 characters, many of whom were descendants of pioneers of the Community, to an estimated audience of 8,000 people. It will long be remembered by those who participated, those who witnessed it and those who had charge of the big enterprise. The pageant committee included besides Mrs. Miller, Max Logan and Mrs. D Fanders.

The history of the Diller community dates back into the "70's". According to members of the Diller family, Samuel Diller and his son, J.B. Diller, greatgrandfather and grandfather, respectively of Marion Diller Logan, who lives in Diller today, came from their home near Carlisle, Cumberland County, Pennsylvania to Fairbury in 1876 as landseekers. They purchased property in Fairbury and two sections of land north of Diller, not on the Indian reservation. In 1877 they brought their families to Fairbury and in 1879 came to live in the Diller community.

Samuel Diller was instrumental in bringing a colony of Pennsylvania German soldiers from Cumberland County, Pa., in April 1878, via chartered railway coach to Fairbury, thence on to this community. There were quite a number of young married couples and single men, 19 adults and 13 children. Mr. Diller became a patron saint to these young settlers, loaning them money at a low rate of interest to purchase reservation land, which had been opened up for settlement in 1878. He was influential in providing education advantages and a place of worship for them. School was held in his home around the kitchen table, with his son William as teacher. Church services were conducted in his home northeast of Diller.

He gave 2 acres of land for the Diller Prairie Home Cemetary. He died in December, 1879, and his grave was the first one or one of the first to be made therein. He died without knowing that the town was to be named for him.

In addition to Pennsylvania Germans, there were settlers of several other nationalities including Scotch-Irish, Germans and others, who came from other parts of the country.

As early as 1873, Abraham Blauser, native of Ohio, had settled just to the northwest of town and was said to have turned the first sod in Pleasant precinct.

The first Post Office was established in Diller on April 5, 1880, with D.R. Kelley as the first Postmaster. The office was located in his home which stood on Indian Creek, a little to the north and east of Diller and was later moved on to the townsite.

Mail was carried across country from Steele City to Blue Springs past the Kelley home on Wednesdays of each week and back on Fridays. The carrier rode a horse and carried a small sack of mail. Diller's small handful of mail was placed on the Kelley center table and out-going mail was placed on the same table. Stamps were canceled by writing the Post Office's name and date across the stamp with ink.

Kelley built a small store in the summer of 1880 where the Coleman Hotel later stood, and became Diller's first businessman. The Post Office was moved into the store that fall and operated along with his business. In 1881, he sold the store to Price Bros. and Thomas Price became Diller's second Postmaster.

R.F.D. service began in Diller on November 1, 1901, when two rural mail routes were established there. The first carrier on No.1 route was Charles Osborne, now living in California; William Diller was appointed carrier on Route No. 2. The first mail wagons were canvas covered affairs with U.S. Mail, RFD painted on the sides and heated in the dead of winter with hot bricks and corn. A third route was established in 1902 with Charles Reinhardt carrier. Routes were consolidated into two routes in 1934.

During the first five years of its existence, while Diller was unincorporated, it was controlled by the County Commissioners. In  April of 1885, the Commissioners appointed a committee of five, W.H. Diller, Joseph Bixby, P.W. Price, J.D. Fanders and A.H. Coleman to perfect a legal organization of incorporation. Elected as first town officials were Joseph Bixby, Chairman, William Green, Treasurer and G.I. Hodges, Secretary.

By this time, there was quite a town with nearly every kind of business established. The Presbyterian church was organized in 1881, built in 1884. The St. Paul's Lutheran Church was built in 1889, the Diller Methodist in 1892 and the Christian Church in 1893.

Diller School District No. 70 was organized on February 9, 1881 with L.D. Edgington, D.R. Kelley and F.D. Darr as the first Board of Education. Serving as first teacher of the school was Miss Etta Ballard, daughter of Alexander Ballard, Diller's first blacksmith. She later became Mrs. J.C. McClay.

In 1887, Frank Pearce came to Diller from Endicott bringing his newspaper, The Jefferson County Record, which he established as Diller's first permanent newspaper, and which later became the Diller Record. Mr. Pearce who published the paper until his death many years later, was for years one of Diller's leading citizens. The Diller Record became a World War II casualty. It was revived for a few years by Roy Holloway, Fairbury, but passed out of existence about two years ago. Today, Diller enjoys a Diller Record Page, in the Fairbury Journal.

Perhaps one might term the 1890's as Diller's boom years. E.L. Loock built his large general merchandise department store that year, with its fine opera house above. Two churches were built that year and things in general were looking up. The Silver Cornet Band was organized. On August 12, 1897, the now famous Diller Picnic was originated by the AOUW Lodge and its auxiliary. With the exception of two World War II years, picnics have been held each year since, attracting thousands of people to it's now two-day celebration.