Lake City, often called City of the Lakes, is situated in Marshall County with Cottonwood Lake as its neighbor to the west and within a five minute drive to Roy, Six Mile, Four Mile, Nine Mile, Clear and Red Iron Lakes.
In 1885 Marshall County seperated from Day County and became a seperate entity. A man name Stout bought the Lake City area land and divided it into lots to be sold to Lake City settlers. When the railroad came through in 1914 Lake City became a town.
With the coming of the railroad, the town of Luffman, located near the present Clear Lake Lodge, went out of existence and most of Luffman moved to Lake City.
In its heyday Lake City was home to about 320 people and over 20 businesses. Today the town's population is listed at 48.