Otter Tail City, currently known as the City of Ottertail, is the historical center of Otter Tail County. Long before it was named the first county seat, during the fur trade it was a busy trading post along the ox cart trail. The trail was traversed by two wheeled wooden carts driven by the Metis, descendants of European fur traders and Native American women. The carts transported furs and other supplies to remote outposts between Fort Garry, Manitoba and St. Paul.

One of the first traders who made his home in Otter Tail City was a colorful Scotsman named Donald McDonald. Known simply as “Mac”, he came to the area in 1849 to set up a trading post. Well known for swearing, drinking whiskey and storytelling, Mac was nearly 90 when he was arrested in 1875 for selling liquor. He was taken to court in St. Paul where the judge, feeling sorry for the feeble old man, acquitted him. Before leaving the judge admonished Mac not to sell anymore liquor. As he shuffled out of the courtroom Mac replied “not until I get home.”

In 1858, the federal government opened a land office in Otter Tail City from which to survey the region. Heading the office was George B. Clitherall, a southern slaveholder who had been appointed by President James Buchanan. There was some feeling that Buchanan appointed Clitherall as part of a plot to turn Minnesota into a slave state. The conspiracy became moot when the Civil War broke out and Clitherall returned to Alabama where he joined the Mobile Home Guard.