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There were 1,631 housing units at an average density of 505.9 per square mile (195.6/km²).

Contrary to popular myth Whiskey Row was not destroyed by a fire in 1888.The village of Agate Bay was created with the construction camp as work on the new railroad began in 1883.The village of Two Harbors was platted in 1885 but was not incorporated until 1888.There are several homes in "east" Two Harbors whose original structures were built on Whiskey Row.According to the United States Census Bureau, the city has a total area of 3.30 square miles (8.55 km Two Harbors is located 20 miles northeast of the city of Duluth.The first residence constructed in Agate Bay was owned by Thomas Sexton (1854), he created a fourteen by sixteen foot shack.

The early settlers lived in primitive conditions, which was common for both the area and time. Diets often consisted of homegrown vegetables and animals that could be caught in the area (at that time there were many dense forests, so deer meat was not an abundant food source).

On February 26, 1907, the village reincorporated as the City of Two Harbors.

The town's history is included in the Lake County Historical Depot Museum.

In the early years Two Harbors consisted of two separate communities called Agate Bay and Burlington.

The village of Burlington along Burlington Bay was platted in 1856, first incorporated on May 23, 1857; it had a post office that operated from 1856 until 1862.

It is located along Lake Superior, which contributes the two natural harbors for which Two Harbors is named, Burlington Bay and Agate Bay.