When the Chicago and Northwestern Railway wanted to expand its line from Madison to Saint Paul, a door was opened for the development of a town.

But two local settlers, Louis Baker and George Fish, platted a village on their land two miles further northwest along the railroad.

Railroad officials agreed to move a train depot to the new community in exchange for $1,500 and two miles of right of way.

[8] Baker and Fish did not want credit for naming the community, so they asked Simeon Mills and Mr. Hill of Madison to come up with a list.

The name "Waunakee" has a Native American origin meaning "fair and pleasant valley."

[10] Former First Lady Barbara Bush visited the village to campaign for her son George for president in October 2000.

[12] The landmark Waunakee Railroad Depot, in the central part of town, is listed on the National Register of Historic Places.

[14] The village is bordered on the south and east by Westport, to the north by Vienna, to the northwest by Dane, and to the west by Springfield.

Six Mile Creek, the main waterway through the community, runs west to east before making a southerly turn through the village on its way to Lake Mendota.

Recent years have seen two redevelopments and two new apartment buildings on Main Street, a reconstruction and new streetscape on both Main Street and Century Avenue, a mural on the Waunakee Furniture building, and annual public art displays.

Commercial air service is provided by Dane County Regional Airport.

A Wisconsin and Southern railroad line runs through town en route to Dane, Lodi, Baraboo, and Reedsburg.

Warrior Stadium is the home of the high school lacrosse, football and track teams.