Founded in the early 19th century on the banks of the Tchefuncte River, the city was called "Cokie", from the French Coquille. In 1811, in honor of President James Madison, the city took its current name. Because of its location, its history is linked to the river and Lake Pontchartrain. At its peak, the Jahncke Shipyard, now completely gone, employed 2,000 people. From the 1920s to the 1940s, many New Orleanians spent their weekends and summers in Madisonville. Today, it is a pretty town with a charming little marina.

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