Stillwater was first settled in 1838 and was named by John McKusick on October 26, 1843. The post office was established in 1846 in Saint Croix County, Wisconsin Territory, and was transferred to Minnesota Territory three years later. Stillwater was incorporated as a city on March 4, 1854. In 1859, T. M. Fullerton was mayor and J. D. McCombs was recorder. The city issued notes, which were redeemable at the office of banker C. Carli in gold at current rates of exchange.