The following are excerpts from the history of Graceville as reported by Mrs. John Daly and Mrs. Walter Wulff in the “History of Big Stone County.”

Bishop John Ireland bought 80 acres for a town site and 120 acres adjacent to it for a farm colony in 1878.  This purchase was made through his agent, Colonel J.R. King, and he named the town Graceville in honor of Bishop Grace who was Bishop of Saint Paul from 1859-1884.  It was incorporated as a village by an act of the State Legislature and was approved February 18, 1881.

Prior to the admission of Minnesota to the Union in 1858, many groups of home-seekers were entering our state.  As early as 1863, Archbishop Ireland, then Father Ireland, became interested in the work of colonization of which he was destined to be the leader and director for a score of years.  The purpose of the original organization, called the Irish Emigration Society, was to induce the famine and poverty-stricken families in Ireland to establish new homes here, free from the oppression of the English government.  Many thousands of exiles from Ireland had settled in the cities along the Atlantic seaboard in surroundings very unfavorable to their moral and material welfare.  The Society proposed to settle them on claims in more congenial surroundings to start life anew.  These people were the backbone of the initial Graceville colony.  Father Ireland had also contracted with the Hill interests for some of their choice Minnesota land holdings and by so doing had made 50,000 acres available for colonization.

The Irish Emigration Society was later known as the Catholic Land Stock Company with a nonprofit feature to help finance worthy applicants who did not have means to purchase farms for themselves.  This was the beginning of the extensive and successful colonization which brought hundreds of Irish, French, German, Belgian and Polish farmers to our state.  Father Shannon stated that the success of the Minnesota colonies lay in the fact that there was a bishop at their head.  This meant that the colonists could be assured of a permanent resident pastor which was essential since they were, first of all, religious centers.  Also, government lands were available and a railroad company was interested in these areas.  After the townsite for Graceville was laid out northeast of the lakes, a large building was erected to offer shelter for the settlers while they were building homes on their claims.  In one corner of this shelter, known as the Immigrant House, was a small grocery store, and on Sundays the place was used for religious services -  hence it acquired the name of the “Immigrant Church.”  Response to the colonization project was immediate and gratifying.  Three months after it was opened for settlement, more than 150 comfortable cabins were built in the neighborhood by families who flocked in from various parts of America and Europe.  After finishing their cabins and planting their gardens, the men were able to earn extra cash by working on the Hastings & Dakota Railroad which was approaching the county.  By 1880, the Graceville Catholic parish numbered 400 families.

Colonization of an area means businesses also and many pioneers contributed a variety of industries.  Even in its earliest days Graceville had many businesses including a butcher shop, a hardware business, a cigar factory and a pop factory.  A cheese factory was opened by a Mr. Hastings.  Due to the lack of interest in dairying among the farmers, and the difficulty of promoting sales, it was not successful.  There were also a druggist, livery stable, general store and grain elevators.  The History of the Minnesota Valley, published in 1882, states: “There are at present four general stores in Graceville, one drug store, one harness shop, one shoe shop, one farm machinery depot, three saloons, one elevator, two blacksmith shops, one physician and one Catholic Church.”

At one time Graceville had two breweries, the Schlitz Company across from the old Milwaukee Stockyards, and the Golblatz Company located north of the James McRae residence in the south end of town.  This was the distributing point for beer and whiskey which were shipped in barrels and kegs or cases via heavy wagons and teams to neighboring towns.  Carloads of ice were shipped from Ortonville for the beer warehouse and a carload lasted about three weeks.  This competed favorably with modern refrigeration, in results anyway.  One of these buildings was later used for local ice storage for many years.

The first schoolhouse was built in 1879.  It was a small two-room, frame building.  High school was not provided during the first years, but as the community grew, so did the school, and in 1898 the high school was established.  The change from a common to an Independent School District was effected in 1893.  A new brick structure was completed in 1929 and school bus service was inaugurated in 1936.

Recent History
1998 - Community Building that houses the library, city offices, council chambers, and the fire and ambulance garage was built.

2005 - Grace Village, the assisted living complex was built.

2007 - Lake View Park was created.

Please send additions to the Graceville History to cigraceville@mchsi.com