Originally the town of Oysterville, Nahcotta City had a colorful beginning, and the town was split by the railroad tracks in 1889. This bitter rivalry led to a number of settlements in the area, including Nahcotta City. The town's name was derived from Chief Nahcati, who had set up camp near Paul's Slough and Nahcotta Basin.
Early settlers of the area transported goods and people by canoe or small sailboat to the coast. If a schooner came to port, the oystermen would row out to deliver their shellfish. Later, bay residents could use boats to reach Nahcotta and board a stage coach or steamer to the nearby cities of Ilwaco and Columbia. A railroad station was built in 1889 at Nahcotta, where it turned east and shot out on pilings over the bay. The railway was abandoned in 1892, and the city was subsequently surrounded by the Shoalwater channel.
As a result of the disputed election, residents of South Bend seize the county's seals and records, despite the fact that the vote was disputed. The residents of Oysterville unsuccessfully challenged the result in court, and the party from South Bend arrives by boat from Nahcotta and on foot. The party takes control of the town's courthouse, and despite the objections of the county auditor Phil D. Barney, the town's other officials are forced to comply with the seizing of records and seals. The seals and records are then loaded onto steamers and transported to South Bend.