The Village and the nearby Cass River are both named after General Lewis Cass, the territorial governor of Michigan in the earlier 19th century and the Democratic nominee for President of the United States in 1848. A sawmill was established at this location on the Cass River in 1851. Farming settlers first came here in 1855. Cass City was incorporated as a village in 1883. Agriculture has been a constant in Cass City and remains a large part of the economy, as well as some local industry and other small businesses.