A tribe of Potawatomi Native Americans once referred to Whitewater as "Minneiska," meaning "white water" named for the white sands of the Whitewater River (now called Whitewater Creek).
In 1836, Alvin Foster first settled the area. He made his stake on the land by marking his name on a tree. At that time, that was all one needed to make a legal claim on a piece of land. In 1837, Samuel Prince built the first log cabin near the current site of Whitewater’s Effigy Mounds. After a six-day trip on foot, 20 settlers arrived here from Milwaukee and started the early makings of Whitewater.
In 1839, Dr. Trippe donated money for the Old Stone Mill which helped create a new industrial hub. By 1840, three streets were laid out: Whitewater, Main, and Center. The town had a mill, blacksmith shop, store, hotel, and school, with a post office on the way. By 1844 Whitewater had grown to six stores, one grocery, two hotels, three blacksmith shops, a tailor, two cabinet shops, a cooper, a gristmill, and twenty-nine recorded homes.