Falun was founded by the Swedish immigrant Erik Fors (or Eric Forsse as he called himself in America). Erik Fors was born in Malung, and emigrated to America in 1850. He participated in The Civil War 1861–1865, and in 1869 he moved to Kansas with about forty other Swedish settlers and founded Falun, after the name of the town neighboring his birthtown called Falun. Some of the Falun residents came directly from Sweden, while other arrived after having lived in Bishop Hill and Galva, Illinois.[4][5]
The first post office in Falun was established in 1870.[6]
In 1886, the Union Pacific Railroad was put rails through the township and a station, the railway was essential for the town's continued development.[5]
In the following year the residents of Falun decided that their numbers had grown sufficiently for them to establish a church. The first pastors for this new church were Rev. Carl A. Swenson.[5]
Of the 45 households, 11.1% had children under the age of 18; 82.2% were married couples living together; 4.4% had a female householder with no spouse or partner present. 8.9% of households consisted of individuals and 2.2% had someone living alone who was 65 years of age or older.[10] The average household size was 2.9 and the average family size was 1.9.[14] The percent of those with a bachelor’s degree or higher was estimated to be 0.0% of the population.[15]
20.5% of the population was under the age of 18, 4.8% from 18 to 24, 19.3% from 25 to 44, 42.2% from 45 to 64, and 13.3% who were 65 years of age or older. The median age was 49.1 years. For every 100 females, there were 97.6 males.[10] For every 100 females ages 18 and older, there were 106.2 males.[10]