[4] The name Mahtowa was derived from a Native American[clarification needed] term meaning "bear"[5] or "grass lands".

As of the census[1] of 2000, there were 494 people, 189 households, and 147 families residing in the township.

There were 211 housing units at an average density of 8.9 per square mile (3.4/km2).

27.1% were of Swedish, 19.3% German, 13.2% Norwegian, 9.2% Finnish, 6.7% English and 5.6% Polish ancestry according to Census 2000.

19.6% of all households were made up of individuals, and 9.5% had someone living alone who was 65 years of age or older.