Lake City is a city in Goodhue and Wabasha counties in the U.S. state of Minnesota. It lies along Lake Pepin, a wide portion of the Mississippi River. The population was 5,063 at the 2010 census. Most of Lake City is located within Wabasha County with only a small portion in Goodhue County.HistoryThe city of Lake City is located 65mi southeast of the Twin Cities at the intersection of U.S. Highways 61 and 63 on the Mississippi River at Lake Pepin. Lac de Pleurs (Lake of Tears) was the name given to Lake Pepin by Father Louis Hennepin, who camped on the shore of the lake in 1680. He christened the large body of water Lac de Pleurs after observing his Sioux captors weeping near the lake over the death of a chief's son. The war party of Isanti Sioux had captured Hennepin and his two companions several miles south along the Mississippi and were camping near the lake on their return north to their Sioux villages near present day Mille Lacs.The first known settler was Jacob Boody, who arrived in 1853. In the years to follow, several explorers passed through this area. The town was platted in 1855. The town supervisors were given special powers by the State Legislature in 1864 to create a port market for grain. At Lake City the waters of Lake Pepin were deep enough to allow for such a port. Soon the town became noted as a profitable market with the volume of trade for the year 1866 bringing in a little over a million and a half dollars.