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The community was named for the fact it is roughly halfway between Pine and Cornucopia. While a post office was established in 1887, the town was platted in another location in 1907, the post office moved there in 1908, and it incorporated in 1909. Halfway earned a place in the history of the dot-com era in December 1999, when it received and accepted an offer to rename itself as Half.com, Oregon, after the e-commerce start-up, for one year in exchange for $110,000; 20 computers for the school; and other financial subsidies. It became the first city in the world to rename itself as a dot com. Among the less obvious reasons the town was chosen were its small population size (and thus its likelihood to accept such an offer) and the city's location, which fit perfectly into Half.com's marketing scheme.