Douglas (officially known as the City of the Village of Douglas) is a city in Allegan County in the U.S. state of Michigan. The population was 1,214 at the 2000 census. The city is surrounded by Saugatuck Township and the city of Saugatuck is adjacent on the north. On December 13, 2004, residents voted to adopt a charter changing the status of the village into a city form of government. Under Michigan law, cities are independent entities whereas villages are part of the township. The official name is City of the Village of Douglas. Douglas, originally known as Dudleyville, was first settled in 1851 as a lumber mill town. In 1861, residents changed the name to Douglas. Reportedly the name was chosen to honor the American statesman Stephen A. Douglas, but other reports indicate that a relative of the original owner of the land also suggested the name because he came from Douglas, the capital of the Isle of Man. Douglas was incorporated as a village in 1870. Area sawmills provided much of the lumber used to rebuild Chicago after the Great Chicago Fire of 1871. After most of the harvestable trees in the area were cleared by the lumber industry, the area became a center for growing and shipping fruit, especially peaches. Tourism and resorts also became an important part of the area economy.