Hudson's original platting took place on August 14, 1869. The town was named North Benton by Elizabeth Clark, an early resident. The first store and post office opened in North Benton in 1868. To avoid mail confusion with Benton, a town to the west, North Benton was renamed Hudson, January 15, 1875. Hudson was incorporated in 1892. In early 1893, the Town area was defined.

Through the years, Hudson has had a wide variety of businesses: wagon maker; blacksmith; harness maker; dry goods; grocery stores; novelty store; and millinery shops. There have also been a shoe repair shop, cabinet shop, hardware, two livery stables, pool rooms, and taverns. In 1854, the Methodists organized and then built a frame church in 1874. In 1859 the U. B. Church organized ½ mile north of Hudson. This building was later moved and is now the U. B. Fellowship Hall. In 1893, C. H. Spake edited The Hudson Banner. Several different homes were used for schools. A brick building was built on the current park site and used until a two-story brick building was built in 1895, with three years of high school. In 1914, the High School increased to a four year term.

The Town Hall was built in l915 and still serves the community as Town Hall and Senior Center. In 1917, the Farmers State Bank was located here. On April 13, 1933, five bandits made a daring hold up of the bank taking $1,337. The holdup was climaxed by an exchange of shots by the Town Marshal, Lee Clark, and the bandits. No one was injured and the bandits escaped.