[3] Illinois Route 117 passes through the city as Main Street and Santa Fe Avenue, leading north 2 miles (3 km) to Illinois Route 17 and south 16 miles (26 km) to Roanoke.

According to the U.S. Census Bureau, Toluca has a total area of 1.06 square miles (2.75 km2), all land.

Toluca was established in 1887 as a stop on the Atchison, Topeka, and Santa Fe Railway, on land owned by Marshall County native William Twist.

In that year, local farmers led by Twist requested that the railroad make Toluca a regular stop.

With the backing of a Chicago firm, a grain elevator was built and maintained by Thomas Colehower of Long Point, Illinois.

Its growth continued, fueled by immigrants from Poland, Italy, and Lithuania who came to work in the coal mines.

[5] Miners from Toluca led a mob for the lynching of F. W. Stewart at Lacon on November 7, 1898.