Eustis was founded along the Burlington rail line in 1886 and named for Percy Sprague Eustis who was the General Passenger Agent at Omaha for the Burlington and Quincy Railroad. Many of the early settlers were of German lineage. They liked the canyons and hills around the village because of the resemblence to their native Germany.

Part of the land for the original Eustis town site was purchased from Gott Schmeeckle and other homesteaders by the Lincoln Land Company. The majority of the land was purchased from the railroad which had been granted the land by the federal government. Lincoln Land Company was incorporated to purchase and sell real estate and to lay out and plat towns and villages in Nebraska. The site for the town of Eustis was surveyed by Anselmo B. Smith and was deeded by the Lincoln Land Company on June 26, 1886 for the price of $250. Eustis was organized in 1886 but was not officially incorporated until 1888. On March 21, 1888, a petition requesting incorporation was presented to the Frontier County Commissioners. The petition was approved and F. C. Schroeder, John Koch, George Walker, Christ Grabenstein, and W. I. Benham were named village trustees. M. C. Dival was appointed Justice of the Peace for Fairview precinct.