The land where Grace City now sits went through many hands in April 1910. Mr. and Mrs. Warren Buck, Mr. E.R. Bradley, and Mrs. George Trembley sold land to Dakota and Great Northern Townsite Company who sold to the Foster County Realty Company. It was then platted for a town. Mr. Bradley persuaded them to name it Grace City in honor of his wife Grace. The coming of the Great Northern Railroad was the reason for the towns being built along it. There was a station every six miles. All nationalities came but the Scandinavians predominated. The first lot was bid in by the Grace City State Bank for $500.
Source: A History of Foster County 1983 Page 321