Swan Lake First Nation was one of three bands who made up the Portage Band, the other two bands were: the Long Plain Band; and the Sandy Bay Band (at that time known as the White Mud Band). In the 1860's, Yellow Quill was appointed chief by the Hudson's Bay Company because the chief before him left only one relative - his grandson "The Short Bear" - who was too young at the time to take over his hereditary position as Chief.

In 1875, the young chief returned from the plains, and being of age, claimed the Chieftainship as his hereditary right. One of the bands then became his followers, another with Yellow Quill, the third chose their own chief and settled in the Lake Manitoba area. These disputes within the Portage Band eventually broke up the band in 1876. On June 20, 1876, a revision of Treaty No. 1 was made. After two days of negotiations, Yellow Quill and his followers were to find unoccupied land in Southern Manitoba. The Short Bear and his followers were assigned land in the Portage area, and the White Mud Band were to locate new land in White Mud River area.

To this date, the three bands known as the Portage Band are now known as:
• Swan Lake First Nation, located near the Swan Lake; Long Plain First Nation, located near Portage la Prairie, and;
• Sandy Bay First Nation, located near Amaranth.
Immediately after the survey of Swan Lake Reserve in 1876, Yellow Quill and his following settled there. Yellow Quill's councillors had refused to settle on the land chosen by Yellow Quill. Yellow Quill was able to induce only a few families to move to Swan Lake. After two years, he eventually gave up and moved back to the area around what is now Indian Gardens near Rathwell. He was eventually granted a small reserve here and there he lived until his death from bronchitis and pneumonia in 1910.

The Swan Lake Band was forced to slowly adjust to life within the confines of the reserve. Many laws, rules and regulations were enforced upon them. An Indian Agent was appointed to each reserve by the Department of Indian Affairs. Their movements were restricted, they could not go beyond reserve limits to hunt or visit without first obtaining a pass from the Indian Agent.

Their freedom of religion was taken, they could not practise their traditional religion without fear of facing prosecution. Missionarys were sent amongst them to pacify and civilize them.

Rations and supplies were issued to the people in which many times, the meat and flour were contaminated which caused health problems that killed many of the people, especially the young. In previous times, the people simply moved camp when the area began to litter with what little waste there was. The crows, magpies and insects would then clean up. In the reservation, this could not be done, so, waste accumulated which caused foreign diseases such as smallpox, tuberculosis, pneumonia, measles, mumps and bronchitis to devastate the population as the people had little or no resistance to the diseases.

Prior to the arrival of the Europeans, the Anishinabe were taught all they needed to know about survival. Children were taught by parents and grandparents. They were taught religion, respect for nature and everything on earth, because their very survival depended on the earth.
In the 1880's, the Canadian Government set up Residential Schools which were run by churches. Children were sent here at an early age for long periods of time and finished when they were sixteen. One of the purposes of the schools was to get the children away from the reserve to be taught the European ways. They were taught English, Christianity and everything that would alienate them from the teachings of their people. The Industrial or Residential schools have since been closed and the children of First Nations now attend school in their own communities and/or local towns.

In the 1900's, the people of the reserve began to farm the land. Many got jobs in the surrounding farms as field hands for local farmers which added to the revenue of the reserve. Many people also did alot of trapping at this time in order to survive. The Chief and Council did not have very much power in running their own community. At this time, the Indian Agent held the most power on the reserve. Many elders now say that when people were paid for their work, the Indian Agent would take the money and give only enough to purchase what supplies were needed. It may also be stated that this was a period of hard times for the people: they were suddenly put on reserves; forced to live in poverty; and forced to learn the white ways, while just several years earlier, they were a proud and independant people who roamed the plains at will. They were believed to be a vanishing race.