The original plat of this area of Wisconsin records the Indian name of this place as Innenehinduc. It translated as "Place of the Evergreen", possibly due to the low-lying evergreen shrub called Canadian Yew which grew in profusion here. Organized on the 8th day of January, 1870, the town of Balsam Lake was named after the large lake of the same name situated mostly within its borders and possibly the evergreens growing along its shores.
When first settled by the caucasians, this town was already the home of a large band of Chippewa Indians. Descendants of the tribe still remain in the village.
Early buildings in the Balsam Lake area included a general store, a creamery, two sawmills, a blacksmith shop and a town hall in the Lykens area. There was also a log school building, a courthouse, a bank and a hardware store.
. The Polk County Government building is located here.
Today, Balsam Lake holds the unique position as the county seat of Polk County and is also home to the Polk County Museum.
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