Delburne began with the survey of the railway in 1910. The townsite was then put on sale on October 4, 1910 and was purchased by Wilfred G. Clendening and M.J. Manning. A folklore legend exists about the naming of the village of Delburne. Wilfred Clendening once resided in St. Louis, Missouri. An employee there was named Wilburne and Clendening liked the name so much that he submitted it to the register of towns. He was advised that there was already a town by that name. He thought of words that rhymed with Wilburne and arrived at Delburne.
Soon enough, there was a large number of people eager to start a new community. The town had a grove which was set aside for a park as the citizens were interested in beautifying their town. The village was incorporated in the fall of 1912. In October, 1912 a board sidewalk program was established to build sidewalks for most of the streets. In the late 1920s, Delburne experienced many fires, which destroyed the hotel, a house, post office and many businesses.