The first known settler was Jacob Boody, who arrived in 1853. In the years to follow, several explorers passed through this area. The town was platted in 1855. The waters of Lake Pepin are deep enough to allow for a port, and in 1864 the Lake City town supervisors were given special powers by the State Legislature to create a port market for grain. Soon after, Lake City became noted as a profitable market for grain with the volume of trade in 1866 bringing in a little over a million and a half dollars.