Territorial delegate Henry M. Rice succeeds in lobbying Congress to pass the enabling act for the state of Minnesota. This act defines the state's boundaries and authorizes the establishment of a state government.
Kittson and Marshall Counties are created. Kittson honors Norman W. Kittson, a prominent territorial pioneer, and Marshall honors William R. Marshall, fifth governor of the state.
Watonwan County is established, named for the river. Watonwan means "I see" in Dakota, but the name of the river may have been a misspelling of watanwan (fish bait).
Morrison and Sherburne Counties are created. Morrison is named for fur traders William and Allan Morrison. Sherburne is named for Moses Sherburne, a justice in the territorial supreme court.
The Mississippi, Pillager, and Lake Winnibigoshish bands of Ojibwe sign a treaty ceding to the U.S. government a major portion of heavily wooded north-central Minnesota, in which lumbering companies had expressed a keen interest. The treaty establishes reservations at Leech Lake and Mille Lacs.
August Schell, founder of August Schell Brewing Company in New Ulm, dies. Born in Durbach, Germany, in 1828, Schell had moved to Minnesota in 1856. Four years later, with Jacob Bernhardt, he founded a small brewery on the banks of the Cottonwood River.