Necedah was named by the Native Americans of the Chippewa tribe, who called the stream "Ne-se-da" or yellow.  This was the result of pigmentation caused by the needles of the yellow pine.  JT Kingston and Thomas Weston were early explorers of the town of Necedah and discovered large forests of yellow pine.  These two men proceeded to be involved with the start of the logging and lumber industry in 1851 in this area.  The Town of Necedah was legally organized on April 5, 1853.

The first railroad to reach Necedah was the Chicago, Milwaukee and St. Paul in the fall of 1877.  Six years later in 1883, the Chicago and Northwestern followed.  The lumber industry greatly benefitted from the presence of the railroads.  The Town of Necedah encompasses about 52,315 acres in Juneau County.  The Yellow River cuts through the town from the North to the South.  The Wisconsin River and part of Petenwell Lake form the East border of the Town of Necedah.  Petenwell Lake is the 2nd largest man-made lake in Wisconsin.  The construction of Petenwell Dam was completed in 1951.

The lake and river provides recreation for boaters, campers, fishermen and hunters. The Necedah National Wildlife Refuge was established in 1939 and offers great opportunities for wildlife enthusiasts.