In an area first claimed in 1838 by white men, the valley took its name from the Anna Palm family, Swedish settlers who arrived in 1853. Here Andrew John Nelson and three hired men built “Brushy,” the first Lutheran church, of logs, in 1861, and it also housed an early school. The congregation was formally organized on Nov. 27, 1870. A second church, built in 1872, was used for sessions of Palm Valley school. The present Gothic Revival style building was erected in 1894.