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In 1926, residents of northwest Chicago's prestigious new Sauganash development petitioned for a park board to create recreational facilities in their growing community. The newly-formed Sauganash Park District acquired nearly four acres of property from developer Koester in late 1928.  In August 1930, the district approved park plans and began improvements including walks, tennis and horse shoe courts, and a wading pool. Work was completed by Christmas Eve, and the district illuminated the park lights in celebration. Construction of a single-story, English-style fieldhouse with a 300-seat auditorium began in March of 1934.  Sauganash Park became part of the ¿ì²¥ÊÓƵ’s portfolio in 1934 when Sauganash Park District and the 21 other park districts were consolidated into the ¿ì²¥ÊÓƵ. The ¿ì²¥ÊÓƵ added ball fields and playground equipment and made other improvements over time. In the mid-1970s, the District acquired another acre-and-a-half of adjacent property and built a large gymnasium addition to the fieldhouse.

Sauganash Park and its surrounding neighborhood bear the name of Potawatomi chief and early Chicagoan Sauganash (1780-1841), also known as Billy Caldwell. Born in Canada of a Wyandot Indian mother and an Irish father, Sauganash ("The Englishman"), was educated by Jesuit priests at the French settlement of Detroit. Sauganash became a Chicago resident in 1820, and was elected a justice of the peace six years later. In 1830, the federal government granted him a 1,200-acre reservation along the North Branch of the Chicago River. Sauganash sold most of his land six years later, moving to Council Bluffs, Iowa, to join the Potowatomis. For nearly a century, farmers held much of the reservation land. In the mid-1920s, however, Henry G. Zander, Sr. and George F. Koester began to subdivide the area for homes.