Alcester was founded in 1879 by the Western Town Lot Company of Chicago, a company who had access to the future plans of the Chicago Northwest Railroad's trek into Dakota Territory.  One hundred thirty-five acres of land were purchased from R.B. Harding and Mary Harding, divided into lots and sold for $50 each.  A depot was the first building to be erected in Alcester and a Lumber Company was the first business.

Today Alcester is home to 800 citizens.  It is located 45 miles south of Sioux Falls, South Dakota and 45 miles north of Sioux City, Iowa.  The town features Alcester Union & Hudsonite Newspaper, Southeastern Electric Cooperative, Premier Bank, Alcester Care & Rehab Center, Alkota Cleaning Systems, Custom Coils, Horizon Health Care Services, a grocery store, convenience stores, restaurants, library, gift store, bar, hair salons, a chiropractor, a massage therapist, art studios, insurance agencies, thrift store, hardware store, grain elevator, and so much more.  Alcester is located within farmland so farming and agriculture play an important role to the Community.

Alcester is very proud of the school district.  Alcester is a combined school with Hudson, South Dakota to form the Alcester-Hudson School District; which was nationally recognized as a Blue Ribbon School in 2005.  To qualify as a Blue Ribbon School , the school is recognized by the Department of Education for achieving superior standards of academic excellence.