Fayal Township was named for the most western island in the central group of the Azores and was organized in 1896, following the beginning of important mining operations and explorations. A petition was circulated among residents in the congressional township 57-17 to organize the township under chapter ten of the General Statutes of Minnesota, 1878. The petition was dated February 4, 1896, and was filed with the county auditor. On February 6, 1896 the county commissioners approved the organization of Fayal and passed a resolution granting the petition and ordering an election to be held on February 25, 1896. The election was held, and the township organization was legally brought to completion. The population in 1900 was 1,016.