The name Ahnapee is of Ojibwe origin. It is derived from anin api. The first settlers of the area came from Manitowoc in 1851, the town's first mill and store opened in 1855, and regular river travel from the port started in 1856. The village of Ahnapee was incorporated in 1873, and got its first mayor in 1879, Samuel Perry. The village of Ahnapee was renamed "Algoma" in 1897. The region's first newspaper, The Ahnapee Record, was established in 1873. A rail line first reached the town in 1882.
Census information for Ahnapee Township shows populations of 718 in 1860 and 1,544 in 1870, including the main settlement of Ahnapee. After incorporation of the village of Ahnapee, census information showed 978 residents remaining in the surrounding town of Ahnapee in 1880, peaking at 2,082 in 1910, before decreasing to 1,911 in 1920. Settlers who grew the population of the region were of several nationalities: English, Bohemian, German, Irish, Dutch, Danish, Belgian. As of the census of 2000, there were 977 people, 371 households, and 277 families residing in the town. The population density was 31.5 people per square mile. There were 426 housing units at an average density of 13.8 per square mile. The racial makeup of the town was 97.85% White, 0.31% African American, 0.61% Native American, 0.92% from other races, and 0.31% from two or more races. Hispanic or Latino of any race were 2.15% of the population. There were 371 households, out of which 32.1% had children under the age of 18 living with them, 67.7% were married couplesliving together, 3.5% had a female householder with no husband present, and 25.1% were non-families. 19.4% of all households were made up of individuals, and 8.9% had someone living alone who was 65 years of age or older. The average household size was 2.63 and the average family size was 3.01. In the town, the population was spread out, with 23.8% under the age of 18, 8.2% from 18 to 24, 26.9% from 25 to 44, 26.6% from 45 to 64, and 14.4% who were 65 years of age or older. The median age was 40 years. For every 100 females, there were 103.1 males. For every 100 females age 18 and over, there were 105.0 males. The median income for a household in the town was $47,500, and the median income for a family was $49,489. Males had a median income of $31,167 versus $21,518 for females. The per capita income for the town was $20,385. About 1.4% of families and 3.2% of the population were below the poverty line, including none of those under age 18 and 2.0% of those age 65 or over.
Notable residents
Bill Jorgenson, musician, "Father of Wisconsin Bluegrass"
