Wauconda is located in the southeastern part of Wauconda Township on the banks of a beautiful little lake which has from earliest times been known as Bangs Lake, named in honor of Justus and Mark Bangs, the first settlers of the place.

The town of Wauconda was organized in the year of 1849, by a vote of the people of the County to divide said County into towns. There were 1,695 votes cast and all except three were in favor of the division.

How it got the name Wauconda. The name Wauconda, which means "Spirit Water" was given to the village, it is said, by a young man named LaFayette Mills, who at that time was a teacher in the "Little Red School." Mr. Mills had read a story of Indian Life in the West and was greatly pleased with the part of the story which spoke of a small body of water called Wauconda, which in the Indian Tongue means Spirit Water. So he suggested the name to the people of the village and commissioners were appointed and favorably considered the suggested name.

Some of the oldest settlers maintained that the village was named for a young Indian Chief who was buried on the East shore of the Lake.