Ontonagon is located in eastern Ontonagon County, at the mouth of the Ontonagon River on the southern coastline of Lake Superior. This county seat is considered the "gateway" to the Porcupine Mountains. Its economy is supported primarily by paper manufacturing and tourism, along with some forest products processing. Interesting places to see include the Ontonagon Light House, the old Court House and the Ontonagon River -- a good fishing spot.

This town was first settled in 1843 by James Kirk Paul, who built the first log cabin here. A post office was started here three years later, with Daniel S. Cash the first postmaster. Paul spent several years platting the area, officially recording it in 1854. The town was incorporated as a village in 1885.