Originally a town called Erie, now referred to as "Old Erie," was started two miles northwest of the present town site, and two miles southeast another town was started named Crawfordsville. The proprietors of both towns made a compromise to abandon both towns and start a new one. They selected the present townsite for the new location. This was in 1866.
In November of 1866 the Erie Town Company was formed consisting of D.W Bray, Luther Packet, Peter Walters and J. F. Hemilwright. Each member of this company donated forty acres of land to form Erie.
The following were then admitted into the membership: A. H. Roe, J. A. Wells, John C. Carpenter, L. R. Nugent, A. F. Neeley, C. B. Kennedy, Stephen Beck, H. H. Roe, Joel Barnhart, J. L. Dennison, S. L. Coulter and T. T. Gilbert.
Erie began to prosper. The first log home was built in 1866 by the widow Spivey. The first store went up in 1867 by Drs. Kennedy & Neely and John C. Carpenter. It is still standing on the corner of 4th and Main.
The first livery stable and family dwelling was built that same year by V. Stillwell. The first hotel was completed Dec. 31, 1867 by J. A. Wells. John Graham opened a blacksmith's shop in 1868 and Carpenter & Porter opened a law office the same year.
The town of Erie was organized by a decree of the Probate Court, Dec. 25, 1869 with J. A. Wells, G. W. Dale, John McCullough, Isaac M. Fletcher and Douglas Putnam as trustees. On Dec. 30 the trustees met and declared the town a city of the third class. J. A. Wells was elected Mayor of the City.
