In 1864, the Northern Pacific Railroad Company was granted land to aid in the construction of railroads and telegraph lines. Included in the grant was the present location of Steele. Wilbur F. Steele purchased that land from the railroad in 1878 and plotted the community of Steele.

Mr. Steele had hoped that the state capitol would be located in Steele, so he erected a three-story building to house the legislature. Political maneuvering and prestige of the politicians won out for location in Bismarck. Mr. Steele sold the brick building to Kidder County on April 21, 1885, for $20,000, to be used as the courthouse. That building is the present Kidder County Courthouse.