As of the 2000 census, there were 3,613 people, 1,636 households, and 953 families residing in the city.
The population density was 1,120.7 people per square mile (433.2/km²).
The infamous four acre plot earned the nickname Whiskey Row, and was said to exist for the sole purpose of "relieving a man from his pay".
Contrary to popular myth Whiskey Row was not destroyed by a fire in 1888.
In the early years Two Harbors consisted of two separate communities called Agate Bay and Burlington.
The village of Burlington along Burlington Bay was platted in 1856, first incorporated on May 23, 1857; it had a post office that operated from 1856 until 1862.
The demise of Whiskey row occurred the following year.
The railroad rapidly expanded its rail and shipping operations and it needed all of the shoreline for its new coal handling and storage facility.
The average household size was 2.19 and the average family size was 2.85. 22% of residents were under the age of 18; 8% were between the ages of 18 and 24; 23.9% were from 25 to 44; 25.1% were from 45 to 64; and 21.1% were 65 years of age or older.
The gender makeup of the city was 47.4% male and 52.6% female.
There are several homes in "east" Two Harbors whose original structures were built on Whiskey Row.
According to the United States Census Bureau, the city has a total area of 3.30 square miles (8.55 km Two Harbors is located 20 miles northeast of the city of Duluth.
There was fire but it occurred before the first load of ore arrived in July 1884 and only seven buildings were damaged.