Madison Lake remained a ‘village’ until the 1980's when the State of Minnesota classified it as a city of the fourth class.”1
The town was named for the adjoining lake, which had been named by the government surveyors in honor of James Madison, fourth president of the United States.2
1http://www.ci.madison-lake.mn.us/index.asp?SEC=E16F6E76-FCF6-42D5-83F2-375B7F406EFE&Type=B_BASIC
2Upham, Warren; Minnesota Geographic Names, Their Origin and Historic Significance; Minnesota Historical Society (St. Paul, Minn., 1969); p. 61.
2Upham, Warren; Minnesota Geographic Names, Their Origin and Historic Significance; Minnesota Historical Society (St. Paul, Minn., 1969); p. 61.
http://www.lakesnwoods.com/MadisonLake.htm
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