The first permanent settlement was established by Hiram Foster, who had led a group of settlers from Vermont into the area in search of virgin Wisconsin timber for harvesting.

Foster built and operated a sawmill on the banks of the Willow River, which gradually drew more settlers from New England into the area.

For the first few years the settlement was called Foster's Crossing, and was later renamed after Richmond Day,[6] the land surveyor who plotted the town.

In 1871, New Richmond was made a station on the southwestern branch of Chicago, St. Paul, Minneapolis & Omaha Railroad's 'Omaha X' network, initially working northwards from Hudson to New Richmond and providing a direct connection to St. Paul.

Construction on the line continued northeast of New Richmond, reaching Spooner, Wisconsin in 1879.

[7] In addition to a steady stream of newcomers from New England, New Richmond saw an influx of Irish immigrants throughout the 1870s and early 1880s, later followed by large numbers of Germans, Norwegians and a few Swedes throughout the 1880s and 1890s.

In 1885, the Wisconsin Central Railroad built a line into the north side of town westward from Chippewa Falls, from where it later continued towards Stillwater and on to St.

[8] On the early evening of June 12, 1899, a deadly tornado tore through St. Croix, Polk and Barron counties along a 46-mile path.

While most of the F5-strength storm's path was confined to rural areas, New Richmond suffered a direct hit, with half the town's residences leveled as well as the entire business district.

Due to state and federal aid and a large amount of donations, most of the homes and all but two of the businesses destroyed in the storm were able to rebuild by the following winter.

[13] A major source of hydrological water is from the Willow River, which is dammed near the center of town.

[16] New Richmond station previously served passenger trains on the Soo Line Railroad.