Dunseith was platted in 1882. The town is named for Jeannette Dunseith Eaton, who was the mother of one of the original townsite company's 6 founders Captain James D. Eaton from Covington, Kentucky. Dùnsìth is a Gaelic word meaning "City of Peace," from dùn and sìth. A post office has been in operation in Dunseith since 1884. The city was incorporated in 1908.
As of the census of 2010, there were 773 people, 274 households, and 170 families residing in the city. The population density was. There were 299 housing units at an average density of. The racial makeup of the city was 15.0% White, 0.9% African American, 79.6% Native American, 0.4% from other races, and 4.1% from two or more races. Hispanic or Latino of any race were 2.2% of the population. There were 274 households, of which 46.4% had children under the age of 18 living with them, 27.4% were married couplesliving together, 25.2% had a female householder with no husband present, 9.5% had a male householder with no wife present, and 38.0% were non-families. 32.1% of all households were made up of individuals, and 12% had someone living alone who was 65 years of age or older. The average household size was 2.72 and the average family size was 3.41. The median age in the city was 27.4 years. 35.8% of residents were under the age of 18; 10.2% were between the ages of 18 and 24; 23.7% were from 25 to 44; 18.2% were from 45 to 64; and 12.2% were 65 years of age or older. The gender makeup of the city was 49.2% male and 50.8% female.
2000 census
As of the census of 2000, there were 739 people, 253 households, and 178 families residing in the city. The population density was 729.2 people per square mile. There were 282 housing units at an average density of 278.2 per square mile. The racial makeup of the city was 24.76% White, 0.27% African American, 71.04% Native American, 0.14% Asian, 0.14% from other races, and 3.65% from two or more races. Hispanic or Latino of any race were 0.27% of the population. There were 253 households, out of which 44.3% had children under the age of 18 living with them, 31.6% were married couples living together, 32.4% had a female householder with no husband present, and 29.6% were non-families. 26.5% of all households were made up of individuals, and 9.5% had someone living alone who was 65 years of age or older. The average household size was 2.74 and the average family size was 3.23. In the city, the population was spread out, with 35.2% under the age of 18, 11.1% from 18 to 24, 23.8% from 25 to 44, 14.5% from 45 to 64, and 15.4% who were 65 years of age or older. The median age was 28 years. For every 100 females, there were 90.5 males. For every 100 females age 18 and over, there were 80.1 males. The median income for a household in the city was $17,917, and the median income for a family was $19,531. Males had a median income of $21,042 versus $20,250 for females. The per capita income for the city was $9,478. About 40.0% of families and 36.5% of the population were below the poverty line, including 48.7% of those under age 18 and 24.6% of those age 65 or over.