In the early 1970s, about the same time that Brooks Resources began developing Black Butte Ranch, a small group of Episcopalians gathered at Sisters High School for occasional meetings. The following year they began holding twice-monthly services at St Edward's Catholic Church with the ministers from Bend and Redmond each taking a turn. The group became a satellite of St Alban's, Redmond, but in 1978 they elected to separate from St Alban's and form the Chapel of the Holy Spirit.
One Sunday in January 1979 snow closed all the roads in and out of Sisters, preventing the vicar from Redmond from making his usual trip. Visitors Don Walster, a recently retired Episcopal priest, and his wife Maggie came into the church, their ski plans thwarted. Don agreed to conduct the service, and accepted the congregation's invitation to return the following Sunday. He agreed to become their vicar and in March was appointed by Bishop William Spofford. At that time the Church was renamed the Chapel of the Transfiguration.
Chapel of the Transfiguration officially became a mission of the Diocese of Eastern Oregon in October 1979, continuing to meet at the Roman Catholic Church. In late 1982, services were moved to the Sisters Fire Hall, where a pool table was converted each Sunday into an altar.
In 1983 Brooks Resources made large tracts of land in an area just west of downtown available to churches. The Diocese purchased a five-acre tract of land in what is now known as heavenly Acres" and on July 10, 1983, ground was broken for an Episcopal Church. The first service was held in the new little building on October 7, 1984, and a month later it was dedicated by Bishop Rustin Kimsey as The Episcopal Church of the Transfiguration.
Transfiguration became a parish in the Diocese of Eastern Oregon in 1993, and the congregation grew large enough to support a full tine rector in 2000. That year a significant expansion of the church's ministry was undertaken by offering as its first service every Sunday an Ecumenical Service for persons from a variety of traditional backgrounds whose denominations are not found in Sisters. Today, this Ecumenical Service and the people who attend regularly are an integral part of the church and comprise half of the total membership of Transfiguration.
In 2003 a beautiful, debt-free community hall and new offices were added in a major upgrade to the property. In 2013 Our Memorial Garden with a columbarium and labyrinth was completed.