The charming City of Hill City owes its very existence to the beauty that surrounds it. In 1900 Al Wandel came to burn the meadows for the Hill City Realty Company. When Al arrived, about all that suggested a future village was the Miller Bros. Logging camp of 7 log buildings situated on Morrison brook (near what is now the intersection of Hwy 169 and 200). The Realty Company composed of James Harper, James Gill, and E.L. Buck originated promotion of this area. They laid out the original nine-block plat of the town site.
Hill Lake is named for the prominent hill in the township. The Ojibway called the area “Pikwadina” or “Piquadinaw”, which translated to “it is hilly”.
Originally functioning under Hill Lake Township, Hill City seceded and became officially incorporated on March 8, 1910.