is a community of about 15,600 people in Montgomery County, Maryland, just north of Rockville, east of Gaithersburg, and west of Olney. Residents of Derwood have the zip code 20855. The area was originally referred to as "Deer Park" and probably became "Deer Wood" which soon turned into "Derwood."
It includes the neighborhoods of Derwood Station (the original Derwood, located in the southwest of the area today), Mill Creek Towne, Needwood Estates, Muncaster Manor, Muncaster View, Hollybrooke, Granby Woods, Park Overlook, Redland, Candlewood Park, Cashell Estates, Avery Lodge, Avery Village, Bowie Mill Estates, Bowie Mill Park, Winters Run, Redland Station, Rolling Knolls, and Emory Grove.
The controversial Maryland Route 200 (also known as the Intercounty Connector or ICC) will run directly through central Derwood. Areas that will be greatly affected by its construction include Cashell Estates and other areas near Shady Grove Road.
Derwood was first recognized in the 1880s as a train stop on the B&O Railroad at the present intersection of Indianola Drive and Maryland Route 355, in the Derwood Station neighborhood.
A second, larger railroad station was built there from 1886-1889. In the early 1900s, a small community with a store, homes, and a church was thriving in the area *surrounding the station. However, because it was located between two larger cities, Derwood did not grow much. Its population leveled off with the invention of the automobile, since people did not need to use trains as much as they did before.
On January 7, 1954, Schwartz Mill caught fire and both it and the Derwood railroad station were destroyed. Derwood station was never rebuilt, since there were not enough passengers traveling through the area.
In 1965, the man-made Lake Needwood was created by impounding Rock Creek, and the lake has become a popular recreation area.
In 1974, the Derwood post office relocated to Redland Shopping Center. It kept the name "Derwood Branch," designating the entire 20855 zip code area as Derwood, thus greatly increasing the size of Derwood from one neighborhood to the present size. This area began to expand in population, especially after the Shady Grove Metro station opened in 1984.