Before French fur traders came to trap the plentiful fur-bearing animals along the Eau Galle River, the Chippewa and Sioux Indians roamed this area. The village of Eau Galle began its recorded history in 1838-39, when Capt. George Wales and his partners Thomas Savage and Capt. Dix erected a sawmill. William Carson and Henry Eaton later became partners in the lumbering business, and the town grew around what was known as the Carson and Rand Company. Eau Galle received its name from the Indians, meaning "muddy waters."