[1][2][3][4][5] Originally home to an Ojibwe tribe settlement called Pequaquawaming, which means "the headland", a narrow neck of land almost surrounded by water.

[2][5] In 1877, Charles Hebard and Edward Thurber purchased a large tract of land on Keweenaw Point, favored especially for its deep, protected harbor and easy access to timber.

The mill site was initially leased from David King, Chief of the local Chippewa tribe, and then purchased from his heirs after his death.

The company owned the buildings and surrounding land, but was known as the "lumberman's utopia" because rent and water were free, and wood could be obtained from the mill for a very small sum per load.

For shipment, the products were loaded into box cars, which were placed onto scows and towed across the bay to Baraga, and then shipped by rail to their destinations.

Mindful of Pequaming's future, the Hebards convinced Ford to purchase the mill and surrounding town as well, and entered into secret negotiations with the hope of completing the sale before operations began.

On September 8, 1923, Ford Motor Company purchased the mill and surrounding town for the sum of $2,850,000; the purchase included the double band sawmill, lath and shingle mills, 40,000 acres (160 km2) of timber land, 30,000,000 board feet (70,000 m3) of lumber, 3,000,000 board feet (7,000 m3) of cut logs, the town land and buildings, the railroad, and towing and water equipment.

As the mill was idled during that period, Henry Ford created other work for residents by establishing a cooperative farm east of town.