|Population||208 (2011 census)|
|• Density||2.69/km2 (7.0/sq mi)|
|Elevation||164 m (538 ft)|
|Area||77.7 km2 (30.0 sq mi)|
The area had been surveyed in 1855, but was not settled until 1874, when George Renison Bell discovered tin in the area. The Krushka brothers discovered a large lode of tin, and set up a mine (named The Brothers Mine) in the area, assuring the town's economic future. The town was originally known as Brother's Home until renamed Derby (believed to be after Edward Smith-Stanley, 14th Earl of Derby the Prime Minister of the United Kingdom).
Brother's Home Post Office opened on 1 August 1882 and was renamed Derby in 1885.
Derby reached its peak in the late 19th century, when its population reached over 3,000, and the Brothers Mine (renamed the Briseis Mine after the winner of the 1876 Melbourne Cup) was producing upwards of 120 tonnes of tin per month.
On 4 April 1929, the Briseis Dam used by the mine burst after heavy rains and the Cascade River flooded the town, killing 14 people. The mine was closed, but re-opened five years later although it never reached the same level of output as it had in the last century and closed in 1948.
Derby was served by a branch railway line which extended from Launceston to Herrick, 4 kilometres (2.4 mi) short of Moorina. The line through Derby station opened on 15 March 1919 and ran through the hills 2 km (1.2 mi) from the town. The railway closed in April 1992.
Mountain Biking in Derby
In 2015 a network of Mountain Bike trails (MTB) opened in the wooded hills surrounding Derby. The trails are called Blue Derby and stretch out to the Blue Tier area. Mountain bike tourism has transformed the town and mountain bike and trail running events have been held. In April 2017, Derby hosted a round of the Enduro World Series. It was the first time the Enduro World Series has been held in Australia.
In March 2019, Derby will host round two of the Enduro World Series.
In 2015 the Tasmanian government called for tourism developments in national parks and as a result approved a mountain bike tourism experience called the Blue Derby Pods Ride. Participants spend three days touring the Derby/Blue Tiers wilderness area and are accommodated in suspended 'pods'.
Since the mountain bike trails opened, real estate prices in Derby have increased. The changes to the town have caused friction between tourists and some locals.
Every October Derby is host to the Derby River Derby; an annual friendly river race featuring homemade or inflatable rafts.  It had a 2008 attendance of approximately 4000 people and can attract up to 1000 competitors from around the state.
- Australian Bureau of Statistics (31 October 2012). "Derby (State Suburb)". 2011 Census QuickStats. Retrieved 2012-11-13.
- Macquarie Dictionary, Fourth Edition (2005). Melbourne, The Macquarie Library Pty Ltd. ISBN 1-876429-14-3
- Derby, The Age, 8 February 2004.
- Premier Postal History. "Post Office List". Premier Postal Auctions. Retrieved 16 June 2012.
- The North-eastern Line of the Tasmanian Government Railways Stokes, H.J.W. Australian Railway Historical Society Bulletin, March–April 1997, pp 67-77; 107-121.
- CARUANA, PATRICK. "Mountain bike experience approved". Examiner. Examiner. Retrieved 17 November 2016.