Tippecanoe City was founded in 1840 along the developing Miami and Erie Canal. Its name derives from Presidential candidate William Henry Harrison's nickname, Tippecanoe, which, in turn, was derived from his heroism at the Battle of Tippecanoe, November 7, 1811.
The early city was a popular stopping-off point for boatmen traveling along the Miami and Erie Canal. The original downtown purportedly included a large number of bars and a red light district. The now dry canal locks can be seen just east of downtown. As Tippecanoe City grew, it merged with Hyattsville, a contiguous village, located on present-day Hyatt Street.
Development of the railroads in the 1850s and 1860s put the canals out of business and slowed the city's initially rapid growth. Ruins of a repair shop (yard barn) for the old Inter-Urban rail system can still be seen on the outskirts of town.
The development of U.S. Highway 25 (County Road 25-A) and subsequently Interstate 75 brought construction and vibrance back to the town throughout the 20th century.