In 1852, pioneers staked claims in an area known as Inver Grove. Attracted by the area's rolling green hills of the countryside and the close proximity to the Mississippi River, these settlers from Ireland and Germany quickly established a community. Those of Irish descent clustered their farms along what is now Rich Valley Boulevard. Settlers from Germany laid claim to the wooded farmland in the northwest portion of the community, clearing and cultivating fields from among the area lakes. Other settlers from France and England built homes along the Mississippi River.

By April of 1858, the Township of Inver Grove Heights was incorporated and the first Board of Supervisors was elected. From 1858 until 1880, hundreds of settlers were attracted to the township that was named after an Irish fishing village, "Inver" and commemorating the homeland of the German settlers, "Grove." By 1880, 240 farms, four churches and four school districts had been established.

As commercial and industrial expansion took place in the late 1880's, people living in the one square mile adjacent to the railroad separated themselves from the surrounding area by incorporating as the Village of Inver Grove in 1909. The two entities existed side by side for more than 56 years. In that time, farmland changed hands infrequently.