European-American settlement began in the mid-19th century, with most migrants coming from New England and New York. The township and community were named after the Iroquois nation of Onondaga, historically based in New York. A post office was first established at the place about 1844, with Perez Howland as the first postmaster. In 1847 Perez Howland built a grocery. A post office was operated from the grocery. Cyrus Baldwin subsequently purchased the building and converted it into the "Onondaga Hotel".The first store of any consequence in the place was established in 1867 by John Sherman. The European-American plat of the village of Onondaga was laid out by John Sherman and others, on July 13, 1870. Several buildings had previously been erected, but the place dates its permanent growth from this time.It was also about that date that the Grand River Valley division of the Michigan Central Railroad was built through the town, which brought more settlers and businesses.