Canyon City is a town located in Grant County, Oregon, United States. It is the county seat of Grant County, and is about 2 miles south of John Day on U.S. Highway 395.

Canyon City was established in June 1862 as a result of the discovery of gold in Canyon Creek, which flows from the south to meet the John Day River at John Day. As up to 10,000 miners flocked to Whiskey Gulch and other sections of the canyon during the early stages of the rush, land values between Canyon City and John Day rose to about $500 per square yard.