In 1851 Joseph Kelly, the first-known European-American settler in the area, came here after the Ho-Chunk had been pushed out. He believed that the site was ideal for a town, as it had water from the Cedar River and adjacent timberland to supply building needs. The settlement was first called "Charlestown" after his son. By 1852, twenty-five other settler families had joined Kelly. The town name was changed, first to "St. Charles" and then to "Charles City," to avoid duplication of other Iowa town names.