In 1872, W. S. Frazier laid off a town site on part of the Frazier property, gave a man by the name of Woodward 1½ acres on the west side of Main Street as a site for a hotel, and sold John Miller 15 acres and a water right for $125 to build a grist mill. The mill machinery contained three runs of stone burrs. In 1873 M.V. Wormington built the first residence on the platted area. By general community consent the town name of Milton was selected in an application for a post office. Milton was on its way to a rather enviable reputation of conservative social life, especially regarding spiritual affairs, sobriety and a high standard of education.

Horticulture was one of the profitable enterprises of the first settlers. From the beginning, the product found a ready and profitable market. A long growing season, combined with ample water and fertile soil made production of a wide variety of fruits and vegetables easy. William S. Frazier planted a large part of his acreage to tree fruits and berries.

By 1882 Milton had a population of 400 and boasted two general stores, two drug stores, one variety store, one millinery store, a hotel, a restaurant, three saloons, three livery and feed stables, one undertaker’s shop and many more shops. It also had a flour mill, a planer, chop, and shingle mill, a hall, a flume, a railroad station, school house, two churches, post office and express office. In 1886 the town Board of Trustees established a city government and incorporated under the name of Milton City.