Hollenberg, who laid out the original plans for the town in 1869, decided to name it Hanover after his hometown in Germany. A contemporary of Hollenberg wrote at the time that Hanover represented "just a little bit of Germany" in Kansas Territory. Located at the junction of two railroads, it was an important shipping point. Access to the railroad was greatly contributed to the economic growth of Hanover, enabling the expansion of the local grain elevator. The success of the grain elevator, because of its close connection with the railroad contributed to the growth and initial success of the town. As the town continued to develop, a German Evangelical Society church, as well as a Catholic church to serve the town's Czech residents were established in 1870. Additionally, following the movement of some Native groups to Oklahoma from the nearby Ottoe reservation, some land was annexed by the Hanover township, which allowed for further expansion as more white settlers moved into the area.