Madelia is a city in Watonwan County, Minnesota, United States, along the Watonwan River. The population was 2,396 at the 2020 census. Mad…Madelia is a city in Watonwan County, Minnesota, United States, along the Watonwan River. The population was 2,396 at the 2020 census. Madelia was founded in 1857, and named for the daughter of a first settler. A post office has been in operation at Madelia since 1860. Madelia was incorporated in 1872.