The town of Knowlton was located about 2 miles northeast of Diagonal. Originally it was to be called "Indianville" because of its proximity to an old Indian settlement. Later it was named Knowlton after a railroad official.
About 1885 the first steam engine drawn train passed through Knowlton. Knowlton became the main coaling station, even after the town of Diagonal got a depot. The railroad kept the town alive through the 1920's.
In 1898, there were two churches, two hotels, groceries, hardware, general stores, milliners, gristmill, livery stables, mortician, barber, restaurant, post office, and a foundry. Two doctors served the community: Dr. Syp and Dr. E.J. Watson. The local newspaper was published under five different masts including: Knowlton World, Knowlton Sentinel and Knowlton News. The population was listed at 450.
Disastrous fires, like this one in 1895; the proximity of Diagonal and the closing of the school eventually led to the decline of this pioneer town.