The place was first known as "Davison's Mill" after Crosier Davison, who in partnership with Simeon Holden, had purchased land and water power rights here in 1854. Benjamin Harris and his sons, Levi and Henry, of West Bloomfield, New York. A post office established in 1857 was named Harrisville, after the family operations. It was platted in 1870, incorporated as a village in 1887, and as a city in 1905.
Harrisville is on the edge of Huron National Forest, which offers outdoor recreational opportunities such as hunting, swimming, cross-country skiing and trout fishing. The forest contains 330 miles of hiking trails. The Huron and Manistee National Forests were separately designated, but were combined in 1945 for administrative purposes.
The Lake Huron beaches in and around Harrisville (including two state parks) have been recognized as being among the "top ten in Michigan." "Old-fashioned lake vacations abound on this pretty stretch of Lake Huron."
Harrisville is situated along the Lake State Railway, formerly the Detroit and Mackinac Railway (D&M). The D&M passenger depot is made of stone, which makes it one of two along the railway (the other being in Standish. It is privately maintained by local citizens as part of the municipality's historical legacy.
As of the census of 2000, there were 514 people, 239 households, and 131 families residing in the city. The population density was 831.2 per square mile (320.1/km²). There were 327 housing units at an average density of 528.8/sq mi (203.6/km²). The racial makeup of the city was 94.94% White, 2.14% African American, 0.39% Native American, 0.97% Asian, and 1.56% from two or more races. Hispanic or Latino of any race were 0.97% of the population.
There were 239 households out of which 18.4% had children under the age of 18 living with them, 44.4% were married couples living together, 8.4% had a female householder with no husband present, and 44.8% were non-families. 41.4% of all households were made up of individuals and 22.6% had someone living alone who was 65 years of age or older. The average household size was 1.92 and the average family size was 2.57.
In the city the population was spread out with 16.0% under the age of 18, 7.4% from 18 to 24, 21.6% from 25 to 44, 25.9% from 45 to 64, and 29.2% who were 65 years of age or older. The median age was 48 years. For every 100 females there were 96.2 males. For every 100 females age 18 and over, there were 93.7 males.
The median income for a household in the city was $27,500, and the median income for a family was $34,286. Males had a median income of $23,625 versus $21,875 for females. The per capita income for the city was $16,983. About 9.3% of families and 13.6% of the population were below the poverty line, including 20.8% of those under age 18 and 6.5% of those age 65 or over.