In the late 1850's the village that gave Bagnell Dam its name was formed on
the banks of the Osage River. The population of the area grew steadily to over 3000 people by the time Bagnell Dam was being built in the late 1920's and early 30's. Many, many other workers and their families also camped or lived around the town of Bagnell during that time. Remains of an old gravel cleaning plant used to help build the dam still stand on the river bank just east of the Fish and Steakhouse.

Around the turn of the century Bagnell enjoyed the title of "The Railroad Tie Capital of the World" with tie yards located where the present campground is now located. Ties were floated down the Osage River or brought by wagon and then loaded on the Missouri Pacific Railroad, whose depot stood where the present swimming pool is located, and shipped across the nation. The old railroad bed still parallels Highway V. The bustling little town had several businesses including hotels, general store, garages, a lumberyard, cafe' and poultry house which was where the present restaurant stands. A ferry crossed the Osage River and connected Highway 54 to Bagnell. The ferry crossing is still visible from the lower side of the campground.