In 2003, East and West Paint Creek Synod Churches voted to discontinue worship services at their churches and to hold services in town in Waukon. The Rev. Harvey Abrahamson served the two congregations. This move was made because the congregations felt they could better reach people with the Gospel by being located in the center of the population. The first service was held at the Farm Bureau Building in Waukon on September 7, 2003. In the fall of 2004, East Paint Creek Synod congregation voted to go back to their church building and the West Paint Creek Synod voted to continue services in town. The result of this vote was a split between the two congregations. A few of the East Paint Creek Synod did decide to continue with the new congregation. The name of the King of Grace was chosen for the new congregation. The constitution and by-laws were filed on December 13, 2004.

In the first part of 2005, the decision was made to seek a more permanent site for the King of Grace congregation. In May 2005, a building was purchased at 101 2nd St. NW. The members and other volunteers spent the summer remodeling the building. The building was dedicated to the service of the Lord on October 2, 2005.

Pastor Abrahamson continued to serve King of Grace. In October 2005, Pastor Abrahamson and the congregation determined that King of Grace should call its own Pastor. This would enable Pastor Abrahamson to concentrate his efforts on the two other congregations he served in Calmar and New Hampton, Iowa. In addition, King of Grace would have a better chance of prospering with its own pastor.

On November 6, 2005, the Rev. J. Kincaid Smith was called to serve the congregation for a period of six months on a part-time basis. He was installed on January 8, 2006. The congregation asked Pastor Smith to continue serving beyond the six months. He served until June 2010. During Pastor Smith's ministry two vicars also served the congregation, Vicar Christian Eisenbeis from 2008-09, and Vicar Joshua Skogen 2009-2010. On June 27, 2010, Vicar Skogen was ordained into the pastoral office, and was installed as pastor of the congregation. He served the congregation until September, 2012.

In 2013, the Rev. Ronald Pederson accepted the call to serve at King of Grace. Pastor Pederson was installed as pastor of the congregation on August 25, 2013 and serves the congregation at the present time.