Settled in the mid-1500s, the city was later founded in 1867 by the Archibalds: Brothers John Sidney and Edward T., along with their cousin George Archibald named it after their hometown of Dundas, Ontario, Canada. The brothers built mills on both sides of the Cannon River. The ruins of The Archibald Mill a flour mill can still be seen today on the west bank of the Cannon River. The milling industry contributed greatly to Dundas' 19th-century success, and at one point the mills in Dundas were considered among the best in the world.
The city's original central business district was located on Second Street, and by 1866 it included two general stores, a library, hotel, shoe store, restaurant, meeting hall and saloon. The neighborhood began to shift once the Minnesota Central Railway built its station on the west side of the river, resulting in the development of Railway Street and the platting of the Railway Addition in 1865. All that remains of the original commercial district is the Ault Store (built in 1866), which started as a general store and housed the town's first library on the second floor; the same building also served as the home of the Dundas News for its operation from 1876-79 when it was bought and absorbed by the Northfield News.
Today, residents in Dundas and the surrounding area have the opportunity to take advantage of NorthfieldWiFi’s high speed broadband network. Residents in the rural area of Dundas who never had a high speed broadband option, now have the same internet offerings that are offered in town.