J.R. Monroe, founder of South Haven, was granted a land patent from the U. S. government in1833 for 65 acres of land along Lake Michigan's shore. Soon after, he married Fanny Rawson at Schoolcraft, Michigan. The newlyweds traveled through the wilderness to South Haven by lumber wagon, where they planned to live in a log cabin that Monroe had previously built. The village which he had envisioned did not develop at this time, so the Monroes moved to Lawrence, Michigan.

It was not until the 1850's that permanent pioneer families started settling at this location. At that time the first saw mill was constructed on the bank of the Black River. A hamlet was soon established with the coming of the mill. The availability of lumber made it possible for a hotel, a school, homes, stores and many other buildings to be built.