Native Americans were the earliest residents in the region. It is speculated that the settlement’s name “Knife River” may have come from the Ojibway Native Americans that lived there long ago. Their folklore credits the name Knife River as originating with the Native American name “Mokomana-Zibi” or “River of sharp stones.”

In 1854, the La Pointe Treaty, with the Ojibwe, granted the entire Minnesota shoreline of Lake Superior to the United States. This provided the impetus for settlement of the north shore. White settlers staked claims near Duluth, Knife River, Beaver Bay, and Grand Marais. Most claims were associated with natural harbors and resources such as copper, iron, and timber. Knife River area’s pioneering settlers were made up of fishermen, lumbermen, and railroad men that all made their impact upon the growth and development of this village.

There is also a strong ethnic history of Scandinavians who settled in the area, primarily in the fishing industry. This community itself has a long history that goes back to the first days of logging and commercial fishing on the North Shore. In fact, the first recorded American total-loss shipwreck on Lake Superior occurred at the mouth of the Knife River in 1838.

The village was also an important stop for both of the major railroads that used to serve the area. The village began as a copper mining settlement and because of the low grade of ore, switched to logging. The pulpwood was located at the old dock at the mouth of the river. When logging died out, the village turned to commercial fishing.