History:
The site of Blue Grass was originally on an Indian trail between the Mississippi River and the Cedar River. This area was the Indians’ choice for their camping site, and over the years as they and their ponies trampled the taller grass, they noticed that the newer grass which sprouted up had a bluish tint (similar to Kentucky blue grass). This area became known as Blue Grass Point. Settlers began arriving in this area around 1836 and soon built log cabins and farmed the rich soil, which sold for about $1.25 an acre.

In 1853, the village of Blue Grass was platted out by J.E. Burnside, John Perrin and James Reynolds. It is believed that the streets were named after the wives of the founding fathers of Blue Grass. Some of the street names have unusual spellings, whether intentional or originally misspelled. They are still used today - for example: Mayne (Main) Street, Juniata (Juanita)  Street.

In 1854, J.E. Burnside published the following announcement to promote growth in this newfound community. “This town is situated on a beautiful undulating prairie, ten miles from Davenport and eighteen miles from  Muscatine, on a state road five miles from the Mississippi and Missouri Railroad and three miles from the river. It has a very healthy population of one hundred, not a case of sickness having occurred this summer. It is within a half-mile of timber and same distance from the best coal banks in the county. It is well watered by both spring and creek. A saw mill and grist mill are in  operation 3-1/2 miles from town.”