The area has been home to Native American tribes for centuries. French fur traders first visited in the late 18th century. Vermillion was founded in 1859 and incorporated in 1873. The name refers to the Lakota name: "wa sa wak pa'la" (red stream). Home to the University of South Dakota, Vermillion has a mixed academic and rural character: the university is a major academic institution for the state, with its only law and medical schools and its only AACSB-accredited business school. Major farm products include corn, soybeans, and alfalfa.