Grove City’s history began in 1869 when the first house in town was built by Olaf Levander. A general store was also in business there. In 1870 the St. Paul and Pacific Railway laid tracks through the area and established the Acton Station two miles east of where Grove City now lies. A post office named Swede Grove was one mile north.
The settlers found this confusing and petitioned the railroad to move its station to the present site of Grove City. Later the post office was also moved here, and the name Grove City was chosen “Grove” from the name “Swede Grove” and “City” because the settlers had optimism about the growth of this area. The first businesses, a general store and the post office, were on Pacific Avenue, south of the railroad tracks. After they burned down, Third Street North became the business street until it was succeeded by Highway 12. In the early part of this century, Grove City had four grocery stores, two hardware stores, two hotels, a shoe store, harness shop, millinery shop, bakery, four grain elevators, two lumber yards, doctor’s office, creamery, five saloons, a pool hall, a barrel factory, feed mill, two bulk oil stations, four filling stations, two garages, a drug store, three restaurants, a confectionery store, two blacksmith shops, a wagon making shop, two banks and a telephone office. City water came in 1898. Electric lights and power were installed in 1913 and a sewage system in 1922.