Beaver was settled in 1854, by people from New England. It was the first village established in the Whitewater valley. The name came from seeing beavers build dams on the creek that travels through the site to join with the Whitewater River. Following the example of the beavers, the early settlers decided to dam the creek to furnish power for a mill. The town was platted in 1856 by Albert Hopson, Dr. Sheldon Brooks, and William J. Duley, as 20 blocks on 40 acres (160,000 m2). From 1857-1906, the community had a post office. During Beaver's lifetime the town also had a flour mill, hardware store, general store, Methodist church, blacksmith, wagon shop, saloon (maybe two), hotel, school, and cheese factory. However, the farming practices up the hillsides encouraged erosion, and the high hills produced frequent flooding. At first rich soil came down the hillsides when rains came. Then sand from the underlying sandstone was washed down year after year covering everything. Some years because of the flooding the farmers had to plant three times. The flood deposits devastated the area, and today, most of the site is overgrown and much is swampy. In 1932 the state purchased most of the land, buildings were torn down and the Beaver area became a nature reserve.
Eleanor Putnam (89), a former resident of Beaver during her childhood in the 1920s and 1930s recalled climbing the hills around Beaver, and how her family farmed the rugged land. She recalled her uncle struggling to climb the hills to farm the top of a plateau, which can be seen in aerial photos. The cemetery "Beaver Cemetery" just west of the old town center is where many of the original settlers to Beaver were laid to rest.
^Jostad, Karen. (1972) "The Buried Town of Beaver." Minnesota State Dept. of Natural Resources, St. Paul. Bureau of Information and Education, ERIC Number: ED072966 (also available in the Minnesota State University Library).