The city was incorporated in 1889, which makes it the oldest city in the Arrowhead region. It owes its establishment to the Soudan Mine and was named after mining financier Charlemagne Tower. Tower is home to the Tower Train Museum; near the museum is McKinley Monument, the first erected in honor of former U.S. President William McKinley shortly after his assassination in 1901.
There are 233 households out of which 20.2% have children under the age of 18 living with them, 48.9% are married couples living together, 6.0% have a female householder with no husband present, and 41.2% are non-families. 37.8% of all households are made up of individuals and 22.3% have someone living alone who is 65 years of age or older. The average household size is 2.06 and the average family size is 2.69.
In the city the population is spread out with 18.6% under the age of 18, 6.5% from 18 to 24, 24.0% from 25 to 44, 26.1% from 45 to 64, and 24.8% who are 65 years of age or older. The median age is 45 years. For every 100 females there are 93.9 males. For every 100 females age 18 and over, there are 91.2 males.
The median income for a household in the city is $26,429, and the median income for a family is $37,500. Males have a median income of $35,000 versus $21,875 for females. The per capita income for the city is $17,169. 10.7% of the population and 3.7% of families are below the poverty line. Out of the total population, 12.5% of those under the age of 18 and 10.9% of those 65 and older are living below the poverty line.