In the fall of 1879, Frank Adams, an engineer for the railroad, saw the feasibility of a new location for a town, and bought 74 acres from four adjoining farms owned by Charles Willford, John Olson, J. Sullivan, and G.B. Hudson on both sides of the new track. In that same year, the post office and first businesses were established. With the railroad as the enticement, entrepreneurs from Elliota, a village situated three miles southwest of Canton, began moving closer to the rail line even to the point of moving entire buildings to Canton. As a result of having a ready source of buildings an men to draw upon, Canton grew rapidly. Through the years, Canton has been tied to the prosperity of the surrounding agricultural area.
Canton Township boasts some of the best agricultural land in Fillmore County.
Canton's location is such that on a dividing line run through the center of town, all lands on the south side drain into the Iowa basin, and all lands on the north side drain into the Root River basin. The city residents are served by a public well, installed in 1918. Telephones came to Canton in the 1890's. In 1922 a local telephone company was established and for approximately 30 years Canton had its own telephone company, until it was acquired by the Ace Telephone Association which presently serves the community. From the beginning the school and churches have played an important role in community life.