Grafton was first settled in 1859 one mile below its present town sight. In January of 1862 the town was completely washed away by a flood. The people rebuilt the town a mile further up stream at its present sight. By 1864 about 28 families lived here. There were many log houses, a post office, church, school and community hall. The town was deserted in 1866 due to Indian attacks. The people moved back in 1868. By 1920 only 3 families still lived here. Grafton has had parts of several movies shot here. One movie that was partly shot here was Butch Cassidy and the Sundance Kid.