The City of Stanton was established in 1870 as a result of railroad construction through this area of the state. The city became known as the "Little White City," due to the crisp, clean, and tidy look of the city to the railroad conductors. The City of Stanton was a service center to the farming industry, and the railroad industry is a significant part of Stanton today. The city has capitalized on the Swedish immigrant heritage of southwest Iowa with the Swedish Heritage & Cultural Center and has wide spread recognition with the city's coffee cup and coffee pot water towers.

The City of Stanton is located in the southeast quarter of Montgomery County in Scott and Frankfort Townships, specifically T-71N, R-37W, sections 3 and 4; and T-72N, R-37W, section 34. The city is located along U.S. Highway 34 and County Highway M63. It is an agricultural center along the Burlington Northern & Santa Fe Railroad, which runs parallel to U.S. Highway 34 through the southern half of town. The County Seat of Montgomery County is the City of Red Oak, which is located approximately 7 miles to the northwest of the City of Stanton.