In 1892, the Rev. Carl J.E. Haterius of Galesburg, Illinois, acquired land at this site with the intention of establishing a community for Swedish settlers and named the settlement for his wife, Olivia. When the townsite was laid out in 1893, land was set aside for this burial ground in association with the Swedish Lutheran Eden Church. The oldest marked grave in the Olivia Cemetery is that of Christina B. Cavallin, who died in 1897. Swedes and non-Swedes together contributed to the early development of Olivia, and the community cemetery serves as a reminder of their contributions.