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==History== The area that is now Madison Lake was originally called Barclay's addition. In 1881, this land was deeded to L.S. Barclay for the town and was shortly thereafter named Madison Lake.<ref name=":0">{{Cite book |last=Schrader |first=Julie |title=The Heritage of Blue Earth County |publisher=Curtis Media Corporation |year=1990 |pages=149β151}}</ref> A post office called Madison Lake has been in operation since 1885.<ref>{{cite web | url=http://www.postalhistory.com/postoffices.asp?task=display&state=MN&county=Blue+Earth&searchtext=&pagenum=2 | title=Blue Earth County | publisher=Jim Forte Postal History | accessdate=April 10, 2015}}</ref> The town took its name from nearby [[Madison Lake (Minnesota)|Madison Lake]], which was named for President [[James Madison]].<ref>{{cite book|last=Upham|first=Warren|title=Minnesota Geographic Names: Their Origin and Historic Significance|url=https://archive.org/details/minnesotageogra00uphagoog|year=1920|publisher=Minnesota Historical Society|page=[https://archive.org/details/minnesotageogra00uphagoog/page/n80 61]}}</ref> The Village was incorporated in 1892.<ref name=":0" /> The [[Wisconsin, Minnesota and Pacific Railroad]] built westward from Red Wing, Minnesota, reaching Madison Lake by 1884 at a distance 78.4 miles.<ref>Interstate Commerce Commission, Valuation Reports, Volume 35</ref><ref>Upham, Warren. Altitudes Between Lake Superior and the Rocky Mountains. United States: U.S. Government Printing Office, 1891.</ref> Mankato, a further 20 miles westward, was reached by 1887. The railroad line became part of the [[Chicago Great Western Railroad]].<ref>Annual Report of Chicago Great Western Railroad Company. United States: n.p., 1910.</ref> This is now the route of the [[Cannon Valley Trail]] and Sakatah State Trail. On Friday, December 23, 1910, four blocks of downtown Madison Lake were devastated by fire. The loss was estimated at $100,000 at the time.<ref>Market World and Chronicle. United States: Chronicle Publishing Company, 1910. pg. 14</ref>
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