Born in 1900 as Smiley Township, with 36 square miles, Nisswa was incorporated as a village in 1908 and became a municipality in 1946. The railroad brought settlers to the area.

Derived from the Ojibwe word "nessawae," meaning " in the middle" or "three," the city of Nisswa is surrounded by a cluster of picture-perfect lakes. The town's namesake lake also connects this neighborhood to the popular Gull Lake chain of lakes - eight interconnected lakes that offer abundant resorts, restaurants and recreational opportunities.

The home of Leon Lum, the man credited for naming Nisswa, still stands on the shore of Nisswa Lake.