However, in 1876 the surrounding country was receiving new settlers and the railway company deemed it time to begin the operation of train service over the western part of the line. Canby Station was established and on August 24, 1876, and the city platted by the Winona & St. Peter Railroad Company soon after the railroad was extended to that point. Because of its location on the rail line, Canby grew quickly and was incorporated as a village in 1879 and as a city in 1905.