Gwinn was acquired by the Cleveland-Cliffs Iron Company (CCI) in 1901, who opened a mining operation there in 1905. In 1907, the president of CCI, William Gwinn Mather, commissioned the well-known Boston landscape designer, Warren H. Manning to design a residential community to support the mining operations. Mather named the community after his mother Elizabeth Lucy Gwinn.

Gwinn became known as a "Model Town", a trace of which remains in the name for the local high school sports teams: the "Modeltowners". It received a Post Office in 1908. The Austin Mine was also operated by Cleveland-Cliffs, which developed the community in 1911 to provide residences for miners and their families.

Gwinn's lakes are surrounded by beautiful woods where you can hunt, enjoy peaceful walks, or take to the hundreds of miles of trails on your snowmobile. Winter provides an opportunity for snowmobiling, cross country and downhill skiing, snowboarding, snowshoeing, ice fishing, and just plain ol' fun. There are many winter carnivals, sports, and other events in the surrounding area.