By 1867 Augusta was a town and the township was surveyed. Some of the homesteaders were Mr. Choate, Charles Cary, D. J. Hogan, and Theodore Douglas. Later, Frederick Walrath bought a cabin next to the Cary homestead and built a two-story log house. He ran a hotel, feed stable and blacksmith shop. Phil Manix bought a tract of land from him in 1881 and ran a store and the post office. Mr. Weigan bought another tract and built a 3 story hotel in 1883. This hotel is still standing and is now known as The Lazy B Bar and Café. There was a fire in 1901 which burned the entire business district of the old town site, including Weaver’s saloon, seven secret societies, W.H. Barnars saloon, Smith’s general merchandise store, and more.
By 1914 there were three general stores, three saloons, two hotels, two barber shops, pool and billiard hall, opera house, moving picture show house, clothes cleaning shop, a creamery, lumberyard, drug store, blacksmith shop, garage, implement dealer, and real estate company, bank, school, and volunteer fire department.
The Great Northern Railroad extended their line to Gilman, causing many people in Augusta to move their businesses and homes north two miles, to take advantage of the business it would bring. Banker Abram Bradley also wanted to cash in on this, so he moved the Augusta State Bank into the substantial brick building and renamed it the Gilman State Bank. Some Augustans were not happy with this and obtained a charter and in 1913 opened the Peoples Bank of Augusta.