Before European settlement, Minnesota was populated by the Anishinaabe, the Dakota, and other Native Americans. The first Europeans were French fur traders that arrived in the 17th century. Late that century, Ojibwe Indians migrated westward to Minnesota, causing tensions with the Sioux. Explorers such as Daniel Greysolon, Sieur du Lhut, Father Louis Hennepin, Jonathan Carver, Henry Schoolcraft, and Joseph Nicollet, among others, mapped out the state.
The portion of the state east of the Mississippi River became a part of the United States at the end of the American Revolutionary War, when the Second Treaty of Paris was signed. Land west of the Mississippi River was acquired with the Louisiana Purchase, although a portion of the Red River Valley was disputed until the Treaty of 1818. In 1805, Zebulon Pike bargained with Native Americans to acquire land at the confluence of the Minnesota and Mississippi rivers. The construction of Fort Snelling followed between 1819 and 1825. Its soldiers built a grist mill and a sawmill at Saint Anthony Falls, the first of the water-powered industries around which the city of Minneapolis later grew. Meanwhile, squatters, government officials, and tourists had settled near the fort. In 1839, the Army forced them to move downriver, and they settled in the area that became St. Paul. Minnesota Territory was formed on March 3, 1849. Thousands of people had come to build farms and cut timber, and Minnesota became the 32nd U.S. state on May 11, 1858.
Treaties between European settlers and the Dakota and Ojibwe gradually forced the natives off their lands and on to smaller reservations. As conditions deteriorated for the Dakota, tensions rose, leading to the Dakota War of 1862. The result of the six-week war was the execution of 38 Dakota — the largest mass execution in United States history — and the exile of most of the rest of the Dakota to the Crow Creek Reservation in Nebraska. As many as 800 white settlers died during the war.
Logging and farming were mainstays of Minnesota's early economy. The sawmills at Saint Anthony Falls, and logging centers like Marine on St. Croix, Stillwater, and Winona, processed high volumes of lumber. These cities were situated on rivers that were ideal for transportation. Later, Saint Anthony Falls was tapped to provide power for flour mills. Innovations by Minneapolis millers led to the production of Minnesota "patent" flour, which commanded almost double the price of "bakers" or "clear" flour, which it replaced. By 1900, Minnesota mills, led by Pillsbury, Northwestern and the Washburn-Crosby Company (a forerunner of General Mills), were grinding 14.1% of the nation's grain.
The state's iron-mining industry was established with the discovery of iron in the Vermilion Range and the Mesabi Range in the 1880s, and in the Cuyuna Range in the early 20th century. The ore was shipped by rail to Duluth and Two Harbors, then loaded onto ships and transported eastward over the Great Lakes.
Industrial development and the rise of manufacturing caused the population to shift gradually from rural areas to cities during the early 20th century. Nevertheless, farming remained prevalent. Minnesota's economy was hard-hit by the Great Depression, resulting in lower prices for farmers, layoffs among iron miners, and labor unrest. Compounding the adversity, western Minnesota and the Dakotas were hit by drought from 1931 to 1935. New Deal programs provided some economic turnaround. The Civilian Conservation Corps and other programs around the state established some jobs for Indians on their reservations, and the Indian Reorganization Act of 1934 provided the tribes with a mechanism of self-government. This provided natives a greater voice within the state, and promoted more respect for tribal customs because religious ceremonies and native languages were no longer suppressed.
After World War II, industrial development quickened. New technology increased farm productivity through automation of feedlots for hogs and cattle, machine milking at dairy farms, and raising chickens in large buildings. Planting became more specialized with hybridization of corn and wheat, and the use of farm machinery such as tractors and combines became the norm. University of Minnesota professor Norman Borlaug contributed to these developments as part of the Green Revolution. Suburban development accelerated due to increased postwar housing demand and convenient transportation. Increased mobility, in turn, enabled more specialized jobs.
Minnesota became a center of technology after the war. Engineering Research Associates was formed in 1946 to develop computers for the United States Navy. It later merged with Remington Rand, and then became Sperry Rand. William Norris left Sperry in 1957 to form Control Data Corporation (CDC). Cray Research was formed when Seymour Cray left CDC to form his own company. Medical device maker Medtronic also started business in the Twin Cities in 1949.