Woodsdale is on the west bank of the Great Miami River at the intersection of Wayne-Madison, Woodsdale and Augspurger roads on the line dividing Madison and St. Clair townships. It started as an Amish Mennonite settlement formed by Christian Augspurger, starting in 1829. It was known as Augspurger. In 1867 a paper mill was built there by the Beckett Paper Company through the efforts of Samuel Augspurger. (The mill was destroyed by fire in June 1880.) The community name was changed to Woodsdale in honor of William Woods, president of the paper mill. A post office operated from Nov. 10, 1870, until July 31, 1906. Woodsdale Island, or Woodsdale Park, was a picnic and recreation area served by the Miami-Erie Canal and the Louisville, Cincinnati & Dayton Railroad. The Armco "Hotline" bridged the Great Miami River just south of Woodsdale, where it connected to the former LC&D tracks, which ran between Hamilton and Middletown.
During the 1890s, Woodsdale Island became Camp Campbell, according to the Journal-News Dec. 20, 1936. The article said "during the administration of Gov. James E. Campbell, Woodsdale Island was the scene of the encampment known as Camp Campbell," a training site for local National Guard units.