Overlooking Grey Cloud Channel, the Grey Cloud Lime Kiln (on the National Register of Historic Places) dates back to at least 1846. While this settlement failed to materialize, there is an early industrial site in the township. The site became part of the Oliver Ames farm in the 1860s and, because the dam at Hastings has raised the level of the river, is now partly under water. The panic of 1857 appears to have put an end to Gray Cloud City. It boasted a large store and warehouse, a brick yard, and blacksmith shop, but few settlers moved there. Gray Cloud City was advertised as having 400 lots, a good steamboat landing, and a view of the river. Paul banker Truman Smith, and lumberman William Gallagher platted Gray Cloud City on the site of Brown’s farm. The Dakota and French Canadian presence has remained very strong on the island. They were soon joined by several others, mostly former voyageurs of French Canadian heritage and other employees of the American Fur Company, many of them married to Dakota women.
These families traded furs and cultivated farms where they raised corn, wheat, vegetables, and livestock. That same summer another trader, Joseph Renshaw Brown, moved his family onto the southern part of the island to a spot called Chanwakan-Medicine Wood in Dakota. Robertson named the island for his mother-in-law, Margaret Mooers, whose Dakota name was Grey Cloud Woman. The bark houses his band left behind were taken over by the families of fur trader Hazen Mooers and his son-in-law, Andrew Robertson. The Treaties of 1837, by which the Dakota ceded their lands east of the Mississippi to the United States, required that all Dakota villages be moved, so in 1838 Medicine Bottle moved to Pine Bend in Dakota County. Paul) to the northwestern par of Grey Cloud Island. In the 1830s about 40 families of the Mdewakanton band headed by Medicine Bottle moved from Kaposia (South St. The only Indian village known to have existed in Washington County was on the island. 100 BCE to 600 CE) and for people of the Late Mississippian culture around 1000 CE. The island has the largest concentration of mounds in the county.
It was an important place for the Woodland mound-builders (c. Grey Cloud Island has a long history of settlement by Native American peoples.
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