The City of Vermillion became a city in 1960 by merging with the nearby village of Vermilion-on-the-Lake in 1960,  It is straddles Lorain and Erie Counties and two townships Vermillion (Erie County) and Brownhelm (Lorain County). 

As commerce grew in larger nearby cities, the Vermilion River proved inadequate for large commercial traffic. Later, recreational boating became very popular.