“The “Squatter” Government at Sioux Falls City”

Originally part of Minnesota Territory, Sioux Falls City was founded during a time of widespread townsite speculation on the frontier. In 1856 members of the Western Townsite Company of Dubuque, Iowa, arrived at the Falls of the Big Sioux River and staked their claim under federal law. The following year, members of the Dakota Land Company from St. Paul, Minnesota, claimed adjacent land. Much of what is now downtown Sioux Falls was claimed by the two companies.

In 1857 the Minnesota Territorial Legislature created Big Sioux County designating Sioux Falls City the county seat, and the business of government proceeded alongside the affairs of the promoters. All went fairly well until May 11, 1858, when Minnesota was admitted to the Union, leaving Sioux Falls City outside its boundaries and beyond the pale of law and order.

The settlers believed a new territory, popularly known as Dakota, or Dacotah, would be created by Congress forthwith. They wanted the capital located in Sioux Falls City and key government jobs for themselves. Toward that end, a member of the Dakota Land Company was sent to Washington D.C., to act as a delegate to Congress. A printing press was hauled in from St. Paul and a newspaper, the Dakota Democrat, was established. Next, they issued a call for a ‘massive convention’ to be followed by a general election. Some settlers argued that law and order was urgently needed to prevent Dakota from becoming the domain of outlaws.

An election was held and on October 12, 1858, a ‘squatter’ legislature convened. A code of laws was adopted, and a number of other bills were considered by the ‘squatter’ legislators, acting with utmost dignity in a frontier setting.

Legislation was subsequently introduced in Congress to create ‘Dacotah Territory.' A House bill established Sioux Falls City as the temporary capital and legalized the work of the ‘squatter’ legislature. Unfortunately, however, it failed to pass, leaving the handful of Dakotans in legal limbo.

Undaunted, the sturdy pioneers held another convention at the ‘Dakota House’, near the site of this marker, followed by an election on September 12, 1859. Voters again elected a delegate to Congress, a governor and a legislature. Like their predecessors, the new ‘squatter’ legislature worked with dedication and spirit.

Once again, however, their efforts were premature. Congress was grappling with the thorny problems of slavery and states rights, and largely ignored the ambitions of Dakotans. At long last, on March 2, 1861, Dakota Territory was created by Congress and the settlers were ‘squatters’ no more.

Erected in 1994 by the Minnehaha County and South Dakota State Historical Societies, Minnehaha Century Fund and Mary Chilton DAR and Sioux Falls Area Foundations”

Minnehaha County, East 9th street east of Phillips Ave. -First National Bank in Sioux Falls (2006)