Grindstone was established in the early or mid 1800s. It was located between Grindstone Butes and Pino Springs in Haakon county South Dakota. Origionaly it was Bad River Crossing Stage Stop. During the late 1870s it was a small but thriveing community sporting a two story hotel, a saloon and a bank. The population may have been around 200 hardy souls at one time. The first post office for the aria was established March 31,  1890.

During the summer of 1886 the Northwestern Railroad Company completed a section of track from Omaha Nebr. to Deadwood S.D. putting the stage line out of buisness. However the old stage route was used by cowboys, prospectors, and drifters for many more years.

By 1903 the town of Wall S.D. located 23 miles southwest of Grindstone, had become the new trade center of the aria, Grindstone was still holding it's own in 1906 with a General Store, a hall, a saloon, a post office, a barber shop, a lumber yard and at one time two different newspapers. The newspapers eeked out a living mostly from the Government postings and listings of land grants and notices.