Grafton, North Dakota was more or less an incident of the railroad construction of 1881, though, as legend would have it, the area was homesteaded three years earlier, in 1878, by Nils Monson. Now you might think Nils rode in on the iron horse or bouncing down the dusty trail on a covered wagon filled with all of his prized possessions, but neither one of those is the truth. Nils Monson, a 29-year-old bachelor, walked to the area from Winnipeg, a trip of roughly 120 miles. He came to the area to homestead and would become the first to deed his 160-acre homestead to the town.

In 1879, the area was settled by Thomas E. Cooper. Later that year, he became the first postmaster when a post office was constructed as part of expansions in service for the Northern Pacific Railway and the Great Northern Railway. Thomas Cooper named the new settlement Grafton, after his wife’s home of Grafton County, New Hampshire.

The railroad expansion led to Grafton's early boom. By December of 1879, the railroad had reached the town, a thriving village of approximately 300 people. The influx of settlers lasted all winter and businesses were popping up almost overnight. Soon, the Walsh County Bank opened its doors, followed by the Bank of Grafton. The Grafton News and the Walsh County Times fired up their presses and the Sherman House opened to accommodate travelers. The little settlement rapidly grew into a lively town within a few short months. In the spring of 1881, Grafton was incorporated as a village.

Some of its growth is also credited to the relocation of the nearby town of Acton, North Dakota. Now if Grafton is an incident of the railroad, Acton was an incident of the steamboat. In its prime, it was a trading hub, with the mighty Red River moving its commodities on steamboats and barges. Unfortunately, rail transportation quickly proved to be faster and more economical and Acton lost virtually all of their trade. The town was left with very few choices. Most of Acton’s inhabitants moved everything they owned, including their buildings to Grafton. By 1883, Grafton was home to approximately 2000 people and contained two weekly papers, seven church organizations, a good school, eight hotels, twenty-five mercantile houses, eight agricultural warehouses, and the usual small traders, artisans, and mechanics.

Today, Grafton is the largest town in Walsh County and is known for its parks, trails, and business district.