A post office named Winneoka was established there in 1874 at the farm of Bernard Brown, who also sold small supplies.

[6]: 651 In 1880 the Wisconsin Central Railroad built the line through Withee connecting Abbotsford to Chippewa Falls.

Another general store soon followed, a grocery and confectionery, a hotel, a blacksmith, another saloon, and a lumber yard.

By 1890, a stage line ran north out of Neillsville, through Christie, Greenwood, and Longwood, connecting with the railroad at Withee.

[6] In 1893, attracted by Spaulding Company's offer of land for a church,[9] a Danish Lutheran minister from Chicago, a follower of N. F. S. Grundtvig, moved with a few families into the Town of Hixon, north of Withee, to form a Danish community and church.

Gradually the Danish community blended with the surrounding English speakers,[10] but Nazareth Lutheran church remains.

[11] The village water system was installed in 1907 and a volunteer fire department was established in 1908.

By then other plats had been added east of Division Street, holding the school, two more churches, a hall, and the State Bank of Withee.

[12] Today, Withee is largely a farming community located one mile from the town of Owen.

It includes one gas station, 5 churches, a post office and pharmacy, as well as a few smaller shops.

[13] According to the United States Census Bureau, the village has a total area of 0.83 square miles (2.15 km2), all land.

The racial makeup of the village was 99.0% White, 0.2% Native American, 0.2% Asian, and 0.6% from two or more races.