In late 1882, Swedish businessman Olof Bergstrom, working for Union Pacific Railroad on the American frontier, conceived the idea that a town was needed where Gothenburg now stands and convinced fellow Swedes to migrate to the United States to build a new town in the West. By July 8, 1885, Gothenburg was incorporated with a population of 300. Swedes and Germans settled the area. The town was named after Göteborg, Sweden, but railroad officials gave it a German spelling. Construction of the first man-made lake designed to generate electricity brought many industries and factories to Gothenburg, and by 1892 most residents had electricity, making it the first city in western Nebraska to do so. A 12-mile canal into the lake provided the first irrigation system serving around 17,000 acres east of the lake. Agriculture quickly became the community's main industry and continues to drive Gothenburg's prosperity. Lake Helen spurred industrial, community, and agricultural growth throughout the city's history. Construction of the Lincoln Highway from New York to San Francisco began in 1913, and following section lines north of the Platte River, it crossed the bridge at Gothenburg and followed a narrow road still visible as it proceeded west on the south side of the river. In 1930, traffic was rerouted onto what is now U.S. Highway 30. Gothenburg's residents have long worked to keep the community a top-notch city that sets a standard for others.