Bluffton Township, organized July 17, 1878, and its railway village, platted in March, 1880 incorporated February 24, 1903, received this name in allusion to the high banks or bluffs of the Leaf river along its course in the south edge of this township. North Bluff creek is tributary here to the Leaf river from the north, and South Bluff creek from the south.
Source: The Book “Minnesota Geographic Names: Their Origin and Historic Significance” Volume 17 – 1920 By Warren Upham”