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Dunbar was founded in 1856 as "Wilson" before being renamed in honor of early resident John Dunbar. It grew into a large freighting depot for goods traveling west out of Nebraska City, and rail service arrived in 1869 via the Midland Pacific Railway and the Burlington and Missouri River Railroad, bringing churches, hotels, banks, and professional services by the 1880s. The village endured a major flood in 1950 that washed away nine buildings, and a 1965 highway bypass later accelerated its population decline.
Dunbar, founded in 1856 as a freighting depot for Nebraska City, grew rapidly after rail service arrived in 1869.
