In 1903 a petition for organization of Watertown Township was accepted by Crow Wing County commissioners. Township meetings were held at homes of members of the township board. On March 6, 1923, it was agreed to ask the voters to build a township hall. Then later that year the town hall was built for a total cost, including furnishings, for $453.85. The first meeting was held on March 11, 1924, and the last meeting was conducted on March 21, 1950.
The building stood vacant for many years until it was donated to the Historical Society by Natalie Swan and moved to the museum grounds in 1979. Displays of early records, photos of pioneers and founders, as well as early maps of the area, are housed in this building.