Saukville was part of the town of Port Washington until 1848 when the town of Saukville was established. In that year, William Payne opened a stagecoach inn for travelers on the route from Milwaukee to Green Bay. The Payne Hotel still stands today and is listed on the National Register of Historic Places. In 1848, several residents constructed a dam on the Milwaukee River and later built a saw mill and a grist mill. Throughout the 19th and early 20th centuries, Saukville was a rural community with many dairy farmers.