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Howe was laid out in 1858. It was named for John Howe, a local merchant. A post office has been in operation at Howe since 1860. The LaGrange County Fairgrounds are located near the center of town, and the fair is held annually on Labor Day weekend; it features harness racing as well as other events such as demolition derbies and tractor pulls that draw crowds from across Indiana and neighboring states. The annual Lima Bean Festival is also held on Labor Day weekend at nearby Lakeview Park (the park's name comes from its location adjacent to Lima Reservoir).