Established by John L. Markey in the year 1870/71, when on the 31^st day of October he platted the northeast quarter of the hundred and eighty four lots in sixteen blocks (Fnacher). The platting occurred after the Pere Marquette Railroad surveyed their right-of-way. According to R.L. Dodge, the first frame house was built by Fred Fishley in 1872 and cost approximately $125.

The first sawmill in the area, built in the 1860’s, furnished the material for the first holtel in Clare, the "Alger House".

Vernon City adjoins the city of Clare in the far northeast corner of Isabella County. It was settled long before Clare County was organized, but was never incorporated or organized as a town. Over the years there has been some movement to annex the area to the city of Clare.

In 1970 there were about 150 people living in the area that was originally platted in 1870/71.