In the early 1880s, the wee town of Royellou consisted of little more than a post office. Its postmaster, Ross Tremain, named the lakeside outpost after his three children, Roy, Ella and Louis. The sixteen families who lived along Lake Dora, named for the area's first homesteader, decided Royallou needed a hotel. When the town's name changed to Mount Dora (the "mount" part for its dizzying height (for Florida) of 184 feet above sea level and the Dora for  Dora Ann Dowdy, resident who provided hospitality to surveyors) town father John Alexander entered into a partnership with Annie MacDonald Stone Donnelly, her husband John P. Donnelly, and Colonel John A. McDonald. They opened Alexander House in 1883, which still stands as the Lakeside Inn's most historic building and one of three in Mt. Dora listed on the National Historic Registry.

Government and City Services

The City Charter provides for the council/manager form of government.  The mayor and two council members are elected at large, with four council members elected by district.  Members serve two-year staggered terms.

In addition to police, fire, streets, parks, recreation and library services, the City also provides water, sewer, electric, storm water and solid waste disposal services.   Mt. Dora has set aside real estate for numerous parks that  include a lakefront boardwalk for bird and wildlife watching.  Future plans include the possible construction of a boardwalk off of Donnelly Street through property donated to the City by Edee Waite.

There is also property set aside as an extensive, tree-shaded cemetery owned and managed by the City. Currently, the Mount Dora is working on a combination beautification and utility of real estate in the City’s downtown area.  The project includes the transformation of  alleyways into a streetscape complete with designer bricks and antique street lights.