Mound Key, located in Estero Bay, is believed to have been the ceremonial center of the Calusa Indians when they were encountered by the Spanish in the early 1500s. German homesteader Gustave Damkohler began planting mulberry trees in 1882 along the Estero River, followed by others who established fish camps and the region’s first citrus groves. In 1894, Damkohler donated property to the followers of Cyrus Teed, who proposed a theory that people live on the inside of the Earth’s outer skin, and that celestial bodies are all contained inside the hollow Earth. This theory, which he called Koreshan Unity, drew followers to occupy and develop Damkohler’s original 320-acre (1.3 km2) tract. They were business-oriented and lived communally, prospering enough to found their own political party (“The Progressive Liberty Party”) and incorporate the town on September 1, 1904, as Estero. At the behest of other local officials, the Florida legislature abolished the municipality of Estero in 1907.
The 1908 death of Teed (who claimed to be immortal) was a critical blow to the group’s faith, whose membership dwindled into the 1960s. The foundation remains as “The College of Life Foundation”, which contributed (for example) at least $25,000 to the Gulf Shore Playhouse in or around 2007.[13] The Koreshans’ original tract is now owned by Florida as the Koreshan State Historic Site.
Access to Estero was greatly improved in the 1920s when the Tamiami Trail, a highway linking Tampa and Miami, and two railroads were built through the area. The Tamiami Trail was fully complete in 1928. The Atlantic Coast Line Railroad (via its Fort Myers Southern Railroad subsidiary) began service through Estero in 1925. A competing railroad, the Seaboard Air Line Railroad (via its Seaboard-All Florida Railway subsidiary) also began service through Estero in 1927. Today, the former Atlantic Coast Line tracks are still in place east of US 41 and have been owned by Seminole Gulf Railway since 1987. The former Seaboard tracks were removed in the 1940s and its former route west of US 41 is now an FPL power line corridor.
Estero incorporated as a village on December 31, 2014.
