Lake Wilson is located in the western part of Murray County, 12 miles west of the county seat, Slayton, on Highways 30 and 91. As of the 2020 Census, the town has a population of 223.
The village was incorporated in 1900, named after railroad promoter Jonathan E. Wilson.
The history and development of this small community has always been dependent on the weather. In 1911, there was a fire that almost destroyed Lake Wilson, then on June 16, 1992, Lake Wilson was struck by a devastating F5 tornado that completely destroyed half of the town, which has since been rebuilt.
On January 12, 2004, the city’s firehall exploded, destroying it and the nearby elevator. It also damaged many nearby houses and businesses. The blast was audible at 25 miles and could be felt as far as 30 miles away. The city estimated that recovery costs resulting from the explosion totaled about $4.2 million. Since then both the firehall and elevator have been rebuilt.
Like so many other towns in Southwest Minnesota agriculture remains the largest industry in the area. Lake Wilson offers over 30 businesses and organizations to Murray County.