Described as having "a post office, one store, one tavern, and a number of families" in 1834, the area was being settled as early as 1812 when a blockhouse was built at the confluence for protection.

[5] Grafton's population reached its peak at approximately 10,000 in the 1850s with employment opportunities coming from the local stone quarries, boat building and commercial fishing.

The Shafer's Wharf Historic District was one of the largest commercial fishing centers along the Mississippi River in the late 19th century.

Today, the Old Boatworks building hosts many antique and craft stalls and is open on the fourth weekend of each month from May through October.

[6] The Great Flood of 1993 caused significant damage to many of Grafton's structures, and a third of the city's residents moved away.

Spring is the wettest season and produces severe weather ranging from tornadoes to snow or ice storms.

Fall is mild with lower humidity and can produce intermittent bouts of heavy rainfall with the first snow flurries usually forming in late November.

Main Street is lined with restaurants, antique, craft, and wine shops, which make Grafton a popular stopping place for bicyclists on the Sam Vadalabene Bike Trail or for visitors in search of fall foliage color and bald eagles.

During the warmer months, visitors can take advantage of the two rivers with boating, canoeing and parasailing activities.

Grafton uses a city council form of government and consists of a mayor and six aldermen from three wards.

The Grafton Ferry takes travelers across the Mississippi River to St. Charles County, Missouri, while the Brussels Ferry takes travelers across the Illinois River to Calhoun County, Illinois.

Water services are no longer provided and maintained by the city and are currently purchased from another source.