Cahoots Theatre Company (formerly Cahoots Theatre Projects) was founded in 1986 by Beverly Yhap. It was incorporated provincially as a non-profit organization in February 1986 and registered as a charitable organization in 1987.

The word cahoot comes from the word for a small cabin, either the French cahute or the Dutch kajuit. Thus, to be in cahoots with someone means, literally, to live with someone in a confined space, implying close cooperation.