The original settlement on the south side of the Zumbro River dates back to 1857.

A grist-mill dam built in 1866 created the falls for which the town is named.

Frequent flooding and a tornado prompted relocation to the north of the river.

There were 90 housing units at an average density of 155.2 per square mile (59.9/km2).

The racial makeup of the city was 93.7% White, 1.0% African American, and 5.3% from two or more races.

25.0% of all households were made up of individuals, and 7.2% had someone living alone who was 65 years of age or older.

33.8% of all households were made up of individuals, and 6.5% had someone living alone who was 65 years of age or older.

About 9.6% of families and 13.2% of the population were below the poverty line, including 15.9% of those under the age of eighteen and 11.1% of those 65 or over.