The first permanent white settlement in Black Hawk County was started in March 1845 by William Sturgis and his brother-in-law, Erasmus D. Adams. They named their settlement Sturgis Falls. The two came to the area in search of homes and desirable waterpower. Upon arriving in the area, Sturgis and Adams were charmed by both the beauty of the area, and also by the possibility of a town site in the area.

Sturgis built a double log cabin on the banks of the Red Cedar River and broke five acres of prairie. This was considered to be the first breaking of prairie land in the county.

The name of Sturgis Falls was changed to Cedar Falls in 1851.