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The design of the Original Town was centered on a wide railroad ground with eight blocks north of the tracks and eight blocks south of the tracks.
Most of the early businesses were along Main Street north of the tracks.
Both grain elevators and the early stockyards were north of the tracks, but the depot was on the south side.
In 1876 the Lafayette Bloomington and Mississippi Railroad was leased to the Lake Erie and Western Railroad which purchased the line in 1879. and the railroad is usually remembered under this name.
Arrowsmith was incorporated as a village in April 1890.
The growth of Arrowsmith was slow ; in 1900 it had only 317 people.

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