In 1903, Marion O. Delaplain and others, including the trustees of the Methodist Episcopal Church, plat the area east of Main Street from the railroad south to opposite 5th Street as the Delaplain Addition. These are small lots with 25 to 30 feet of frontage. Palisade incorporates as a town in 1904, changing the name from Palisades. The first municipal election is May 2, 1904, and Herman Kluge is elected Mayor. Prohibition comes early to Palisade in 1908, though wine grapes, grown primarily for personal–not commercial use–especially in Rapid Creek and the Vineland, succumb to a disease. Several churches begin and erect buildings, including the 7th Day Adventist, Christian, Presbyterian, Baptist, and Methodist Episcopal Churches which still stand.
A new, bigger school is built on Kluge Ave. and 4th St. in 1900. The first graduation is in 1905.