The city of Tenney was named for the owner of its site, lumberman John P. Tenney, because of his willingness to give land to the railroad, which came through in 1885. The first house was built by his son-in-law, Fred Maechler. The post office was established in 1887, the plat was filed for record with the office of the Register of Deeds in Wilkin County on August 4, 1887, and the city was incorporated on November 30, 1901. The city originally encompassed four square miles, but never grew enough to meet its boundaries, so in 1916 the farmers petitioned their land from the city, and their request was granted. According to an unpublished town history written in the mid-1980s, the city's population peaked at about 200 in 1910. Before 1910 the city boasted a church, three grain elevators, a hardware store, two mercantile stores, a butcher shop, bank, machine shop, implement shop, blacksmith shop, pool hall, lumberyard, and a hotel, which also housed the barber shop, saloon, and post office. In 1909 a small post office building was erected and used until 1952, when Leonard Hardie became postmaster and moved the post office to the general store. Electricity arrived in Tenney in 1914, through a franchise granted to Otter Tail Power Company.