This town was located by the Chicago, Milwaukee and St. Paul Railroad in 1887. Mr. Harrison Butler deeded them 80 acres of his land in order that they might plat a town and name it in his honor. Geo. Bennett started the first general store, and paid freight on the first carload of lumber received there. Chas. Leach was the first clerk in this store. H. C. Tegtmeier followed him as clerk. H. H. Showerman built and operated the first hotel; this building is still standing and is now used as a cream station, in charge of Geo. W. Butler. The following grain flat houses were built and ready for grain receipts: Empire Elevator Company, J. L. Barry, buyer, received the first load of grain from H. E. Ash; Strong and Miller; Bagley Elevator Company. The first lumber yard was built by Hustis, Stair and Case, the second general store by S. L. Potter, the first hardware by Chas. Minzel, the first bank by Dale and Lambert. In 1895 Butler was incorporated as a town. The first church was the Evangelical. Later Methodist Episcopal, and German Lutheran churches were built.

Schools: The first children of school age were taught by H. H. Showerman in Henry Ash's kitchen. The next place used for this purpose was Geo. W. Butler's claim shanty, one-half mile north of the village. The first public school house was built on southeast corner of H. Butler's homestead in 1885. The first school house on the townsite was built in 1893, a two-story frame building, on the same site as the present school, and which was replaced in 1912, with the new brick building still in use.

Enrollment in 1925: Grades 67, high school 14.

Faculty: High school 2, grades 3.

Population of Village: The town has continued to grow, and has a population now, of 200. There are quite a number of retired farmers, and all lines are enjoying very good trade.