[13] Long before Europeans settled in Algonquin, the Potawatomi Native Americans originally inhabited the land.

Settlers Dr. Cornish, Dr. Plumleigh, Eli Henderson, Alex Dawson, and William Jackson arrived shortly thereafter.

The first signs of economic growth occurred in 1855 when the town saw the construction of the railroad, which enabled farmers in the neighboring area to have other means of getting their products to the markets in Chicago.

The Village Hall of Algonquin was erected on January 31, 1907, at 2 South Main Street, and is still standing today, where it functions as a historical landmark and community gathering place.

It was later replaced with a 4 lane bridge with an incline to reduce stress on vehicles headed east.

The Fox River offered immense recreational opportunities and several summer homes were constructed.

Algonquin remained a small town for much of the 20th Century, growing steadily, until the 1980s, when the village's population exploded with new residential construction.

In the 1990s, development shifted to Randall Road, which saw the construction of numerous retailers, restaurants, and services, beginning in 1993.

In the mid-2000s, development also began on the Algonquin Corporate Campus, which is slated to include industrial and office development spread over 1,000 acres (4.0 km2) on the southwest side of the village, bringing hundreds of high-paying jobs to the area.

[18] The Village President is Debby Sosine, and the current Trustees are Maggie Auger, Laura Brehmer, Brian Dianis, Jerry Glogowski, Bob Smith, and John Spella.

[26][27] The majority of the village is served by the Algonquin Area Public Library District which includes two facilities, the main branch on Harnish, just west of Randall Road, and a second branch on Eastgate, south of Algonquin Road.

The post office also serves nearby Lake in the Hills, even though the two municipalities have separate zip codes.

Under development is the Algonquin Corporate Campus on the village's west side along Randall Road.

As a result, any potential business or building in the park that brings high-paying jobs has the opportunity for incentives and to have the development review process expedited.

Businesses the village is targeting for the park include those specializing in healthcare, technology, and research and development.

Also part of the park is the mixed-use Esplanade development, which currently includes 2nd and 3rd story office space for several companies.

In addition to serving the needs of the local western Algonquin area, the corridor also functions as a major destination retail area serving a vast region that includes most of McHenry and northern Kane Counties.

Like the East Algonquin Road Corridor, the West Algonquin Road Corridor is a neighborhood retail area, composed mostly of small retail shops, restaurants, and neighborhood services.

The village's Old Town District, focused primarily along Main Street/Illinois Route 31 includes dozens of independent retailers and franchises, offices, and fine restaurants.

Some of the major roadways include: Algonquin was previously served by a rail line between Elgin and Crystal Lake.