In 1914 a small circulating library known as the Keystone Library Association was organized. Books were borrowed from the State traveling library and were located at the Keystone Bulletin office. The library was well used but discontinued through the summer months.
The next record of the library was recorded in 1923 with Mrs. Dotsen as librarian. In 1927 books were obtained from the Traveling Library and distributed from local homes. In 1929 books were rented from Cedar Rapids at a cost of five cents per day. In 1931 the Ladies Literary sponsored a library in the Odd Fellows Hall.
In 1958 the Ladies Literary Club promoted a story hour for children and started a library in the basement of the Keystone Legion Hall with donated books. By 1964 the books were moved to the main floor where there was more light. The Literary Club held an annual bazaar to help support the library. In 1967 the Town Council designated the library as the Keystone Public Library and appointed a board. In 1975 Oscar and Alvena Schroeder purchased the old laundramat building on Main Street and gave it to the town for use as a library. The rear addition to the library was built in 1981 from funds provided by the Schroeders. At this time the name was changed to the Schroeder Public Library.
The library has always kept pace with the new formats and programming. Today the library offers books and music CDs, DVDs, computer software and of course books for all ages. The library has five public access computer stations with high speed Internet access and also provides a wireless connection. Preschool is held at the library two days a week.