Though Lily Lake has been a community since the early 1800's, it was not incorporated until December of 1990. Residents were content with township/county form of government acting in their interests of public service and land planning until hit with the reality of a major landfill being located west of the Village.

Under the provisions of the Act of Congress of April 1820 entitled "An act making further provision for the sale of Public Lands," the early pioneers staked out their claim on the land they hoped to build their homes. The law required that they clear the land, establish homes and when the land was put on sales in the land grant office in Chicago these pioneers would be permitted to purchase the land at $1.25 per acre. Settlers began arriving in Kane County in greater numbers. These people were of Scottish, English, Welsh, French, Irish, Scandinavian and German descent.

When the pioneers arrived in this area in the spring of 1835, they found a wilderness inhabited by the Pottawattomie Indians as well as other tribes, and by an abundance of wildlife. At that time, there were only a few hundred people living in Chicago, but
Galena, in the north western part of the state was a busy city, having been settled in 1827. Mining interests drove business in Galena, in 1834, Aurora was settled while St. Charles and Geneva, then called Harrington's Ford was settled in 1834. Kane County was named after Elias Kent, a highly regarded attorney and Senator from Kaskaskia. Elias Kent helped draft the first State Constitution and served as Secretary of State when the Kane, DeKalb and Kendall County region had an estimated population of 200.

Today's Village of Lily Lake originated as "Canada Corners" at the intersection of what is now Illinois Route 47 and Empire Road/Indian Creek Trail, and Hanson Road in western Campton Township. The first settler of the area was William Kendall, an Englishman, who arrived in 1836. It is believed that he settled on Empire Road. That same year, Eliphalet Read arrived from New Brunswick, Canada with his sister Elizabeth (Read) Outhouse, her husband James Outhouse and their two children. James Outhouse settled in the area around Lily Lake on Wooley Road and eventually had seven children. The original house was dismantled and replaced with a new brick Prairie Square style home in 1922 that still stands today. As of 1837, they were "cultivating the banks of Lily Lake." Eliphalet's parents, Joshua and Priscilla Read arrived in 1838. They had 12 children in Virgil Township. The great, great granddaughter of James Outhouse, Mary Campbell and her husband Dave still farm the property on Wooley Road today.

The lake was one of the earliest resources of the community. Prior to the 1800's, it was a life source for migrating Native Americans who would fish the lake and hunt the hills beyond. For early settlers, the Lily Lake and Ferson Creek served as a food source, water source, and energy source for the saw mill on Hanson Road. Today what was once a 12 acre lake is now a pond and wetland, throughout the year wildlife is abundant. The area known as Lily Lake serves as a major recharge area that contributes to the aquifers serving Lily Lake and Campton Township. Environmental sensitivity of the lake and its associated watershed is well recognized.

The Lily Lake Cemetery is the only cemetery within the Village boundaries. It is one of the oldest cemeteries in Kane County. It is the resting place for veterans of World War II, Word War I, The Civil War and the Revolutionary War. This is the final resting place for a veteran of the Revolutionary War, Abner Powers. On July 4, 1902, Lily Lake was the focus of an all-day celebration, beginning with a parade when the unveiling of the remarkable 30 foot granite shaft monument was dedicated to Corporal Abner Powers. The cemetery is independently owned and maintained by a volunteer organization which welcomes donations to maintain operations.

Wooley Road, which is visible by traffic passing through town on Route 47, contains historical structures including a crown-topped silo adjacent to the Great Western Trail. Additional historic structures are found along Route 47, Empire Road, Hanson Road, and Welter Road.

The "union church" now called the Congregational Church of Lily Lake was built in the fall of 1872 where Empire Road intersects Route 47. Empire Road was then part of the Grand Detour Road that ran from Chicago to Galena, adopting resolutions to become incorporated by the name "Campton First Church" of the Methodist-Episcopal denomination.

Lily Lake has been home to two churches since before the turn of the twentieth century. The Congregational Church of Lily Lake along Empire Road. The Grace Evangelical Lutheran Church was originally built in 1894 and replaced with the current structure in 1960. Together with the Lily Lake Elementary School, these churches complete the list of community "centers" blending together residents of the various disconnected subdivisions across Lily Lake and the surrounding area.

In the western part of the township, four schools including the Indian Creek Trail/Read Road School, the Stewart School, The Lily Lake School east of the Village and a school about a mile north on Route 47 were consolidated in 1918 to create the present Lily Lake School. For several years this school offered a two-year high school, and from this non- hjgh school district most of Campton Township's young people continued their education in Elburn, St Charles, Plato or other high schools of their choice.

For many years that followed, Lily Lake School was the cultural center for the area. The Community Club met there to discuss issues. The Lily Lake Community Fair was held on the school grounds at the end of September from 1920-1940. This regional fair included exhibits of livestock, poultry, produce, grain, fruits, baked good, canned goods, plants, flowers, and household items. It was a full day of entertainment with a plowing match, horse-pulling contest, athletic contest and evening entertainment with prized. Companies from the Fox Valley, Elgin, and Aurora advertised in the fair booklet each year. Generous donations were made by businesses and individuals who supported the big event.

The Lily Lake School is one of the strongest assets of the Village's planning area. The school is recognized by residents and non-residents alike because of its location on Route 47 and iconic rural American image. Built in 1918, the building is a significant local landmark, although not presently listed on any official designated list. Today the school continues to be a social center playing host to sporting and scouting groups.