The Towanda District Library is located in Towanda, Illinois, adjacent to Interstate 55 and Historic Route 66. Although the village of Towanda itself is a small community with a population of just 431 in 2023, it is but a few minutes from the prosperous communities of Bloomington and Normal, Illinois, home of two universities, corporate headquarters for major insurance companies, and an electric vehicle manufacturing company.

The Towanda library was established in 1939 with the help from the Federal Works Agency Project Administration. In 1943, the village assumed complete responsibility of the library.

In August of 1964, the library was closed due to a lack of funds. Library board members and other volunteers raised funds to successfully reopen the library. In June, 1967, the Township Tax was passed and the library became officially known as the Towanda Township Library.

The library changed its name to the Towanda District Library when the district was formed on February 10, 1988. The library was housed in several locations in Towanda before beginning construction of a new building in late 1988. The new building opened February 7, 1989 at 301 S. Taylor Street in Towanda. This building was funded by an Illinois Secretary of State building grant and with several special reserve funds.

As of February 2023, the library district encompasses Towanda Township, Blue Mound Township, and parts of Money Creek Township which includes the towns of Towanda and Cooksville, farmland, and three subdivisions. The district has a population of 1,939 residents.

The library is part of the RAILS Library System and Resource Sharing Alliance, and as such is one of over 200 libraries that form an online consortium using the SirsiDynix Workflows automated library system.