The City of Keithsburg was founded in 1837 by Robert Keith, a Scotchman, who emigrated to America in 1834. Keithsburg is also known as Middle Yellowbanks, being situated in the Yellowbanks Territory, a name given by the Sac and Fox Indians for the sandy yellow clay soil in the riverbanks. The Yellowbanks Territory, consisting of Keithsburg, New Boston and Oquawka became part of the Military Tract which entitled veterans of the War of 1812 to parcels of land as military bounty.