Dufur is a city in Wasco County, Oregon, United States. The population was 588 at the 2000 census. It is a farming community, with wheat being an important crop, along with tree fruit and grapes. Dufur was incorporated on February 10, 1893 and named after Andrew J. Dufur and his brother Enoch Burnham Dufur. In 1859 they began raising stock on 600 acres (2.4 km) of land located where the city now stands. On the second full weekend of August, Dufur holds its annual Threshing Bee, a harvest festival celebrating the local agricultural economy. The festival includes demonstrations of horse-drawn harvesting equipment, and a steam tractor that powers a belt-driven threshing machine.