[6] In 1869 the Minnesota legislature voted Kandiyohi to be the new state capital due to its central location.

The bill was vetoed by governor William Rainey Marshall on the grounds that "[t]he western treeless districts" further out from Kandiyohi would place the capital away from the likely population center.

[7] Kandiyohi was derived from a Sioux name meaning "where the buffalo fish come from".

[8] According to the United States Census Bureau, the city has a total area of 0.34 square miles (0.88 km2), all land.

There were 233 housing units at an average density of 685.3 per square mile (264.6/km2).

28.7% of all households were made up of individuals, and 8.9% had someone living alone who was 65 years of age or older.

24.7% of all households were made up of individuals, and 9.8% had someone living alone who was 65 years of age or older.