Greentown was laid out in 1848 on the site of a former Native American village. Its inception was largely due to the need for a nearby trading post by people living in the area. First was a merchant, L. W. Bacon who built a log house on the northeast corner of Main and Merdian. Next was C. O. Fry who built on the southwest corner of the intersection. Just prior to the establishment of these local stores, around 1840 the Miami tribe of the Algonquin native peoples had a population in Howard county of about two hundred. There was an established village where South Kokomo is located, as well as villages south of present-day Cassville and Greentown. The frequently traveled paths were from Kokomo to Peru by way of the village of Cassville, and from Kokomo to Meshingomesia by way of a village south of Greentown.