Land was bought from John Anderson and at the time was a field of wheat. Many people moved from Lac qui Parle Village. Madison was located on the rail line of the Minneapolis and St. Louis Railroad. The name Madison was suggested by C.P. Moe in memory of his former home, Madison, WI.

Madison incorporated. Both Dawson and Madison started to petition for county seat status. The first county seat was in Lac qui Parle Village.