Wallace, Idaho is a city in and the county seat of Shoshone County, Idaho, in the Silver Valley mining district of the Idaho Panhandle. Founded i…Wallace, Idaho is a city in and the county seat of Shoshone County, Idaho, in the Silver Valley mining district of the Idaho Panhandle. Founded in 1884, Wallace sits alongside the South Fork of the Coeur d'Alene River. The town's population was 791 at the 2020 census.