

The school was founded in Red Wing in 1862 by Eric Norelius, moved to East Union in 1863, and then was built in St. Red Wing also was the home of Minnesota Elementarskola, a Swedish elementary school that was the predecessor to Gustavus Adolphus College, a private liberal arts college of the Evangelical Lutheran Church of America (ELCA). It was the educational center for Hauge's Norwegian Evangelical Lutheran Synod in America, commonly known as the Hauge Synod. Red Wing Seminary was a Lutheran Church seminary, founded in 1879.

It closed in 1869 because of low enrollment due to diversion of students to the American Civil War. Red Wing was once home to Hamline University, founded in 1854 as Minnesota's first institution of higher education.

James Hotel remains a working token of the earlier time. Service industries including stone-cutting, hospitality, and retailing. Some early industries were tanning and shoe-making, while other businesses manufactured farm equipment, bricks, barrels, boats, furniture, pottery, and clothing buttons. Numerous immigrants from Germany, Ireland, Norway and Sweden settled in this area and were also skilled craftsmen. Red Wing's first settlers built small mills, factories, and workshops like those they were familiar with in New England and the upper Midwest, whence many had come. It is now within the city of Red Wing, and is known as the Prairie Island Indian Community. In 1889, the federal government established a Mdewakanton Sioux Indian reservation along the Mississippi River to free up land for settlers. In 1887, Norwegian immigrant Mikkjel Hemmestveit set the first North American ski jumping record, 37 feet, at the Aurora Ski Club's McSorley Hill. The term "Red Wing style" remained in use in the U.S. In the 1880s, Aurora club members introduced what became known as "Red Wing Style" ski techniques, patterned after the Telemark skiing form.

The Aurora Ski Club in Red Wing, founded on February 8, 1887, was one of the first ski clubs in North America, reflecting the skills of Scandinavian immigrants in the area. Once the railroads connected southern Minnesota with Minneapolis and Saint Anthony, where the largest flour mills were built, the port at Red Wing lost prominence. The warehouses in the port of Red Wing could store and export more than a million bushels. In 1873, Red Wing led the country in wheat sold by farmers. Before railroads were constructed across the territory of Goodhue County, it produced more wheat than any other county in the country. The settlers cleared the land for wheat, the annual crop of which could pay the cost of the land. They encroached on traditional territory of the Mdewakanton Sioux. In the early 1850s, settlers from Mississippi River steamboats came to Red Wing to farm in Goodhue County.
