Madison was first settled in the early 1800's as part of the Connecticut Western Reserve.

After being named for a number of early settlers, Madison was incorporated in 1867 and renamed in honor of President James Madison.

In 1825, bog iron was discovered in the Dock Road area.  Since timber was also plentiful, iron production became the major industry until 1851 when the bog iron was used up.  In 1835, Arcola Iron Works at the mouth of the Arcola and Cunningham creeks was the largest industrial site in Ohio.  Shipbuilding began at the harbor in 1828 and flourished until 1863.

With the end of the industries, the lakefront became a popular location for summer homes and retreats.  The dock was  also used as a departure point of the Underground Railroad.  With the land now cleared of timber, the area was well-suited for farms, nurseries and homes.

In 1852, the Lake Shore and Michigan Southern Railroad arrived and made travel easier.  Nestled around a traditional New England Park Square, many buildings in the Madison Village date to the time of it's organization.  The row of buildings at the village center plus twenty-eight additional buildings and sites in Madison are listed on the National Register of Historic Places.  Twenty-six homes bear the Historic Home Plaque from the Lake County Historical Society.