Europeans first settled the Urbana area in 1822, when it was called Big Grove. When Champaign County was organized in 1833, the county seat was placed on 40 acres, 20 donated by William T. Webber and 20 by M. W. Busey, considered the city's founder, and it was named Urbana after Urbana, Ohio, hometown of State Senator John W. Vance, who wrote the act creating the county. The new town was first celebrated on July 4, 1833. Stores opened from 1834 and mills from about 1838, the Methodist Episcopal Church and parsonage were built in 1840, the first school in 1854, the Baptist church in 1855 and the Presbyterian church in 1856.
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Urbana suffered a setback when the Illinois Central Railroad's Chicago branch was built two miles west on flatter land, and the town of West Urbana grew around its depot from 1854, renamed Champaign in 1861. The rivalry led Urbana to replace its ten-year-old courthouse with a much grander one to keep the county seat. Through the efforts of Clark Griggs, Champaign-Urbana was chosen for a new state agricultural school, Illinois Industrial University, which opened in 1868 with 77 students and became the University of Illinois Urbana-Champaign. Several efforts to merge the two cities have failed at the polls. On October 9, 1871, a fire started by children playing with matches burned much of downtown Urbana, the day after the Great Chicago Fire began, both spread by drought and high winds.
Sources
Wikipedia: Urbana, Illinois