Mudanjiang is named after the eponymous Mudan River (literally, "Peony River") flowing through it. Imperial Russia built a train station for the Chinese Eastern Railway in Mudanjiang in 1903, after which local development started boosting. Both Chinese and Russian settlers established themselves here. Mudanjiang was little more than a large village until the 1920s. By that time, Mudanjiang was strongly overshadowed by the nearby county town of Ningan (Former Ninguta). However, merchants from several countries including France, Russia, Britain and Denmark set up sub-agencies in Mudanjiang during this period, which led the trade area of the city to a rapid expansion.