The historic unincorporated community of La Pointe, was established by French fur traders as a trading post in 1693.

Because it was an ancient Native American settlement, and had served for so long as a fur trading site, as well as being the center of early missionary efforts in the area, Madeline Island was deemed an ideal location for a museum relating to important aspects of Wisconsin's history.

To house the artifacts, a wooden structure was constructed by combining pieces of several of the island's historic buildings, including a former La Pointe jail and the American Fur Company's post.

Ten years later, it was transferred to the Wisconsin Historical Society, which has operated the museum ever since.

The main displays focus on the area's Native American tribes, the fur trade, early missionaries who visited Madeline Island, and the region's maritime history.