The city of Fargo was founded in 1871 in a strategically important location — the intersection point of the future Northern Pacific Railway and the Red River. Initially, the settlement bore the name "Centralia", but it was soon renamed in honour of William Fargo, one of the directors of the railway company and co-founder of the famous financial company Wells Fargo, to emphasise the key role of the railway in its formation.
Fargo's development was inextricably linked to its geographical position. Becoming a major railway hub, the city received the unofficial title "Gateway to the West". It served as a transit point for settlers and cargo heading to develop the fertile lands of the Red River Valley. In the 1870s and 1880s, the steamboat landing also played an important role. This combination of rail and river transport ensured the city's rapid economic growth.
In its early years, Fargo had the reputation of a typical frontier town. However, it quickly transformed into a regional centre for agriculture and trade. An interesting feature of its early history was its fame as the "divorce capital" in the 1880s due to very liberal marriage dissolution laws for that time. Despite the devastating fire of 1893, which destroyed most of the wooden structures, Fargo was promptly rebuilt in brick, testifying to its economic vitality. The founding of the North Dakota Agricultural College in 1890 (now North Dakota State University) laid the foundation for transforming the city into an important educational and cultural centre of the region.