The town was named Edmonds in 1884, but was not incorporated until 1890 as an official “village fourth class” of Snohomish County. In that same year, Brackett sold 455 acres (1.84 km2) to the Minneapolis Realty and Investment Company. The town was plotted and a wharf was added along the waterfront. Modest houses and commercial structures sprouted up with a row of shingle mills dominating the cityscape.

In 1891, the Great Northern Railroad came through and early settlers and investors grew hopeful that Edmonds would prosper. Unfortunately, the Panic of 1893 created business setbacks and the town owners foreclosed. Brackett reclaimed his town and along with other early settlers continued to develop its infrastructure. By 1900 there was regular passenger ferry service available by the steam-powered “mosquito fleet” of private ferryboats from Edmonds to Seattle.

Edmonds suffered major fires in 1909 and 1928, and many buildings were lost. The first car arrived in Edmonds in 1911. As more roads were established, Edmonds experienced steady growth along with commercial and residential development.