Chauncey Barber's family and the Kremer brothers, Nicholas J., John and John P. were among the earliest settlers of the town in 1856. The Kremers were born in Lorraine, France, and came with their father to Alden, Erie county N.Y. in 1850. Several years later, they emigrated to Wisconsin, and from there to sites in Danville township just north of Minnesota Lake in Blue Earth county. Mr. Barber built the first hotel, and remained permanently. The town was first named Marples in 1858 in honor of Charles Marples, another early settler of the town. Later Marples moved to Missouri. Charles Marples died 22 April 1876 at Blue Springs, Gage County, Nebraska; and is buried there. The name was changed to Minnesota Lake on February 23, 1866. The town was laid out in October, 1866 on the east bank of the lake from which it derives its name, and was incorporated on February 14, 1876.

Mr. Barber was attracted by the great opportunity for hunting in the area. He not only kept the hotel as his main business, but also engaged in carpentering, blacksmithing, and merchandising. Barber's hotel which stood on Main Street was for many years the headquarters of the county, and was known far and wide as one of the principal stopping places on the road for immigrants, travelers and land hunters.

N.J. Kremer returned to Minnesota Lake from Danville township to become one of its most active, prominent, and wealthy citizens. Peter Kremer, another brother, moved to the lake in 1874 where he took an active part in business and public affairs.

By 1900, the town had grown to a population of around 700 and has remained fairly constant in population since then. In 2002 the community celebrated its 136th year, and looks forward to developing in the years to come.