The Curious Case of North Sioux City's South Dakota Residency

This border town's unique history and lower taxes have made it a draw for Siouxland residents.

Mar. 29, 2026 at 7:08pm

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An extremely abstracted, out-of-focus photograph of a small-town main street scene, with soft pools of warm light and blurred figures creating a dreamlike, nostalgic atmosphere.The quaint charm and lower taxes of North Sioux City have made it an appealing destination for those seeking an alternative to life across the state border in Sioux City, Iowa.Dakota Dunes Today

North Sioux City, originally founded as McCook in the 1860s, is a small town located in South Dakota despite its geographic proximity to Iowa. The town's unusual state residency is the result of shifting river boundaries used to define the Iowa-South Dakota border in the late 19th century, locking North Sioux City on the South Dakota side. This has given the town a tax advantage over its Iowa neighbors, making it an attractive option for those working across the border in Sioux City.

Why it matters

North Sioux City's unique status as a South Dakota town nestled in the corner of Iowa and Nebraska highlights the complex history of state borders and the impact they can have on local communities. The town's ability to attract residents and businesses by offering lower taxes demonstrates how geographic quirks can shape the economic and social dynamics of a region.

The details

Originally founded as McCook in the 1860s, the town was later renamed Stevens and then North Sioux City in 1951 to better reflect its role as the northern gateway to the Siouxland region. The town's location on the west side of the shifting Big Sioux River, which serves as the border between Iowa and South Dakota, is what ultimately led to it being part of the Mount Rushmore State despite its physical proximity to Iowa.

  • North Sioux City was founded in the 1860s as the town of McCook.
  • In 1922, the town was renamed Stevens.
  • In 1951, the town officially became known as North Sioux City.
  • When South Dakota gained statehood in 1889, the state border was locked in based on the location of the Big Sioux River at that time.

The players

McCook

The original name of the town that would become North Sioux City, founded in the 1860s as one of the first European settlements in the region.

Stevens

The name the town was given in 1922, after WW Stevens.

North Sioux City

The current name of the town, adopted in 1951 to better reflect its role as the northern gateway to the Siouxland region.

Big Sioux River

The river that serves as the border between Iowa and South Dakota, with North Sioux City located on the west side of the river, placing it firmly in South Dakota despite its geographic proximity to Iowa.

Sioux City, Iowa

The larger neighboring city to the south of North Sioux City, with which the town has become more integrated over time.

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The takeaway

North Sioux City's unique status as a South Dakota town nestled in the corner of Iowa and Nebraska serves as a fascinating example of how state borders can shape the development and identity of a community. The town's ability to leverage its tax advantages to attract residents and businesses from across the border highlights the complex interplay between geography, politics, and economics that can define a region's character.