Originally, Sunburg was established in hopes that a planned railroad line would travel through the community. However, the plans for the railroad never materialized. Nevertheless, Sunburg became an important part of the local farming economy. An elementary school existed from 1955 to 1989, as part of the Kerkhoven-Murdock-Sunburg School District. The school closed due to shrinking enrollment. The school building was later sold to the community of Sunburg for $1, which uses it as a community center and fire hall. The community center, fire hall was expanded, an assisted living center, called Marian's manor with proceeds from a $1.3 million estate bequest from Marian Peterson.