The first Europeans to visit the area were the Jesuit missionaries
Claude-Jean Allouez and Claude Bablon, who visited a Native American village on the
Milwaukee River near the future site of Grafton around the year 1670. Timothy Wooden, who arrived in 1839 from the eastern United States, is considered Grafton's first permanent resident. The majority of the early residents were immigrants from Germany and Ireland. The
Wisconsin territorial legislature officially created the Town of Grafton in 1846. James T. Gifford, an investor who founded
Elgin, Illinois, developed the community of
Ulao in 1847 as a port on
Lake Michigan. At the time,
steamships were common on the Great Lakes and burned massive amounts of wood for fuel. A steamship could consume wood equivalent to several acres worth of forest on single journey. Much of Grafton was primeval beech-maple forest, which settlers were clearing for agriculture, and Gifford saw an opportunity for Ulao to prosper as a steamship refueling station. He built a sawmill, a warehouse, and a one-thousand-foot-long pier on the lake where ships docked to buy wood. The community prospered in the 1850s and 1860s, but by the end of the American Civil War, Ozaukee County's forests had been largely depleted, and Ulao declined, with most of the land being converted to agriculture. The
Village of Grafton was incorporated from some of the town's land in 1896. In the late 1930s, a group of pro-
Nazi German-Americans affiliated with the
German American Bund purchased land on the Milwaukee River in the Town of Grafton. They ran a private camp called Camp Hindenburg, and hosted a speech by Nazi-supporter
Fritz Julius Kuhn in 1939. The camp closed with the outbreak of
World War II in 1941. George Froboese, a prominent member of the camp, committed suicide in 1942 while being escorted to New York to answer a Federal subpoena. Paul Knauer, another member of the camp, was stripped of his U.S. citizenship for having falsely taken the oath of allegiance and was deported back to Germany after the war. In 1940, the pro-American, anti-Bund Wisconsin Federation of German-American Societies opened Camp Carl Schurz in the Town of Grafton to compete with the Nazi-sympathizers. Grafton experienced significant population growth during the
suburbanization that followed World War II, and the village annexed more farm land from the town of Grafton for residential subdivisions and commercial developments. The construction of
Interstate 43 in the mid-1960s connected Grafton to other communities, such as
Milwaukee and
Sheboygan. ==Geography==