The City of Stephenson originated as a stopping place for the Chicago and Northwestern Railway when they built a rail line between Menominee and Escanaba. It became a village in 1898 and a city in 1969.

The City of Stephenson has 1 ¼ square mile of area and is split by the Little Cedar River running through its middle. US-41 runs through Stephenson, which is conveniently located near Lake Michigan and Green Bay so that summer sports such as fishing, swimming, and boating are available to anyone who will take advantage of the opportunity. The Stephenson area is also known for its excellent deer and turkey hunting and the area becomes a beehive of activity during these seasons.

The present population of Stephenson is just 875 people and boasts a bakery, a grocery store, three banks; an agricultural feed mill, a movie theater and is serviced by two cable TV systems. Numerous shops and stores are located in the downtown area and along US-41 and five churches are located in the city.

Stephenson has its own water supply and a modern sewage system. Fire protection is provided by a volunteer department that also covers two townships. A volunteer ambulance and emergency rescue unit is also located within the city limits.