A Glimpse Into History
Prehistory
Paynesville has a rich history of inhabitation that reaches back as far as the Hopewell Culture that existed over 2,000 years ago. Â Evidence of burial and effigy mounds, as well as camp sites littered with pottery and stone tools, abound in the area. Â One such site, known to locals as Behr's Hill, is crowned with an "altar" mound that overlooks Lake Koronis and the warterways flowing into it. Â It was a religious site that was once surrounded by effigy mounds. Â The Hopewell flocked to the site and summered on the beautiful lake with it's three islands. Â They were the area's first tourists, and began a tradition of summering in the area just as people still do today.
The Dakota
Mdewakanton Sioux
The land that is Paynesville was once part of the Dakota people's home country. Â The Dakota are the eastern portion of the Sioux nation. Â Adept in the fur trade, they were instrumental in building the infrastructure of central Minnesota.
The Fur Trade
Building an infrastructure
The fur trade was vital to the economy of the North West Territory. Â French, British, and later the Americans, depended greatly on Dakota fur trappers to supply traders with quality pelts in exchange for valuable European goods. Â Various trading posts were built throughout the region and were regularly visited by Dakota trappers. Â Though it is unknown who owned and operated it, one of these posts was still present when white settler first began arriving in Paynesville.
Land Fever
The Newcommers
Minnesota had gained territorial status in 1849.  By 1856, immigrants from the east began flooding the territory in search of land.  A man named William B Reed led a party of settlers to a place he called "Onawa", near a ford in the river that ran through the site.  Reed failed to file a town-site claim and abandoned the area, leaving the settlers to build their own town.  A second attempt at creating a town was made but failed.  Finally, in 1857, the Paynesville Townsite Co. successfully plotted out and claimed the site.  It would be named after the town's first recorded settler, Edwin Ebenezer Payne.
Old Paynesville
The Settlement
The first site of Paynesville was described as "Little more than an Indian camp with a few log cabins thrown in". Â The town was situated along the fording spot of the Crow River. Â Only one framed building existed, built by the town-site company to be used as a hotel for travelers passing through the settlement.
The Sioux Uprising
War in Paynesville
From the start, the Paynesville area was highly prized by both white settlers and the Dakota. Â In 1862, after a number of dishonest treaties with the U.S. government, and the threat of starvation, a large portion of the Dakota began attacking white settlements in the region. Â Upon hearing news of the attacks, the settlers in Paynesville hastily built a sod fortification to house refugees. Â The town was soon evacuated and the settlers moved to Richmond and St. Cloud for refuge. Â A group of men soon returned to salvage their crops. Â While staying in the fort, they were surprised by 250 Dakota. Â A small skirmish ensued and the men escaped. Â The Dakota destroyed the entire town except for two buildings who were owed by friends of the War's leader, Little Crow. Â The settlers believed, and some evidence backs up their claim, that it was Little Crow who led the attack on the town.
The Aftermath
Returning to Paynesville
The settlement of Paynesville had been completely destroyed, and to this day, no photos or artifacts are known to exist from the original site. The U.S. Army built and garrisoned wood stockade, and a a frontier town began taking shape.  It would not be long, however, before events would again change Paynesville forever.
The Railroad
A New Era
Two railroads were racing to Paynesville in 1886. Â The Great Northern Line was laying a track that would connect St. Cloud and Willmar, MN, and the upstart Soo Line was building a line running from Minneapolis to Canada; the lines would cross one another in Paynesville. Â The Great Northern would run North of the towb, and the Soo would run to the east of town; the two lines would cross about a mile west of Paynesville. Â The race was on...
The Three Paynesvilles
Railroad Divides the Community
With the rail lines coming to the area, it wasn't long before people began leaving Old Paynesville to be closer to the lines; literally picking their homes and businesses up and moving out of town. As a result, two new communities were built within earshot of Paynesville.  North Town was build along the GN line, and Jim Town was built along the Soo Line.  Each town had its own post office, and rivalries were tense, at times ending with fists.
New Paynesville
Jim Town
The Haines family arrived ito Paynesville in 1868; among them was James Clement Haines. Â The family staked a claim to the east of Old Paynesville and began working the land. Â Owning businesses and involved in local real-estate, Jim Haines began plotting out a town on the family farm as soon as he heard news of the Soo Line passing through. Â The family donated land for a depot, and donated land to a number of businesses in Old Paynesville, later selling off the remaining lots. Â By the turn of the century, Jim Town was a busy community and the largest of the three Paynesvilles. Â In 1914, the three communities merged and Jim town was renamed New Paynesville. Â A few years later they dropped the "New" and the town has forever been known as Paynesville. Â "Jim Town", as it was called, is the location and nickname of Paynesville's historic downtown district. Â Many of the original buildings still stand today.