In the month of October, 1863, the Rev. Peter Arvedson of Algonquin, IL established weekly services in Dundee.  Services were held on Sunday afternoons in the Congregational Church.   On Monday, October 10, 1864, the parish was organized in the name of Saint James Church Dundee, in Communion with the Protestant Episcopal Church in the United States of America.  The Baptist Congregation having built a new church, offered their old church building for sale for the sum of $550.00.   Rev. Peter Arvedson gave his personal security for the purchase money as a venture of faith.   The parish had at that time eight families and seven communicants. 

          In April, 1868, a young medic, Edumnd Francis Xavier Clevland, M.D., took his place in the parish.  Then in 1874, Rev. Samuel J. French, Rector of Elgin, took charge along with Rev. E.F. Cleveland, M.D.  Dr. Cleveland developed a building fund which then passed first to Rev. George P. Pratt on April 28, 1901 and then to Rev. Frank Erwin Brandt on April 26, 1903.  After securing the consent of the Rt. Rev. Charles P. Anderson, Bishop Coadjutor of the diocese, we secured plans for a church building from Mr. John Sutcliffe, the architect, under the direction of Rev. E.F.X. Cleveland, M.D. and Rev. F.E. Brandt, our present church was built.

          The church cornerstone was laid August 10, 1903 by Rev. Cleveland and Rev. Brandt.  St. James Episcopal Church opened for services in November, 1903.  The church cornerstone was opened in 2004.  The items from the cornerstone are now on display within the church.  Current items where reinserted into the cornerstone for the next hundred years and resealed in 2006.