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In 1861, the Dakota Territory was established from the Louisiana Purchase, and in 1862, the Homestead Act of 1862 was passed, allowing any United States citizen or aspiring citizen, as long as he had never borne arms against the U.S., to claim 160 acres of land in South Dakota as well as other areas of the country. Once he improved the land, acquire a deed for the land for no money other than a small registration fee. In 1883, Peter J. Hoven arrived in a covered wagon and claimed land in what is now part of Hoven. South Dakota became a state, along with North Dakota, in 1889, and the town grew rapidly. The railroad came into town, bringing with it more pioneers and business owners. By 1915, there were two general stores, a bank, a pharmacy, two saloons, a newspaper, and numerous other businesses. It is situated in Potter County, South Dakota.

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