In 1871 Josiah Perham, the first president of the Northern Pacific Railroad, had a vision of taking a railroad from Lake Superior to the Pacific coast. Once the railroad entered Otter Tail County in September 1871, many people began to settle in the area. The original townsite was laid out in June of 1872 and the first wooden buildings were built. The village was platted March 6, 1873 and in March 1877 it officially became Perham, named after the NP Railroad president.
Perham is home to many lakes, with swimming, boating, and fishing in the summer, and community events and activities year-round. With a wide variety of recreational activities, and a relaxed, resort-like lifestyle, Perham offers many of the attractions of big-city life while providing the home-town feel of a smaller community.