It was in 1851 when Eric Peterson stepped ashore, climbed the bluff and saw the beautiful panorama of Lake Pepin spread out before him. Five years later the area was surveyed, a plat lay out and the Swedish settlers called it Stockholm. As in most small cities along the river, early industries included fishing and clamming. Commercial fish provided thousands of barrels of Lake Pepin fish for the eastern markets. For about a dozen years carp were grown commercially and sent to New York for the Jewish holidays.

Clamming provided the raw material for button factories in Illinois, Iowa, Wisconsin and Minnesota. Twenty years of harvesting diminished the supply and other materials came to be used for buttons, signaling the end of this business. The ice industry began as soon as the Burlington Railroad was completed through Stockholm. It was the only place on the lake where ice was shipped to the large cities. Both hotels and private homes were filled with workers who came for the ice harvest.

Many people laughed and joked when word circulated in 1970's that tiny little Stockholm would host an art festival. Today on the third Saturday in July, the Stockholm Art Festival brings thousands of people to the one-day event. Over one hundred artists of all kinds display and sell their craft at reasonable prices. Customers also browse the gift and antique shops