The area in and around Balsam Lake was originally inhabited by a large band of Chippewa Indians.

This may have been due to the large amount of Canadian Yew, an evergreen shrub, which grew in abundance there.

The town was organized on January 8, 1870, and was named after the lake that lay within its borders.

[6] Today, Balsam Lake is the home of the Polk County Government Center.

[8] Wisconsin Highway 46 and Polk County Road I are main routes in the community.

35.9% of all households were made up of individuals, and 17.3% had someone living alone who was 65 years of age or older.

The racial makeup of the village was 96.00% White, 2.95% Native American, 0.21% Asian, 0.21% Pacific Islander, and 0.63% from two or more races.

32.7% of all households were made up of individuals, and 15.2% had someone living alone who was 65 years of age or older.