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The town took root out of a settlement by Jasper Martin along the Sixteen Mile Creek; Martin immigrated from Newcastle, England with his wife Sarah and two sons on May 17, 1818. Martin was granted 100 acres (40 ha) of land, from the Crown in 1820, designated Lot 14, Concession 2, Township of Trafalgar, Halton County, in the District of Gore. Martin later built a grist mill along the creek and created a pond, known as Mill Pond, to power his mill. The mill became the center of settlement for others as they settled in the region. In 1837 the area had a population of approximately 100 people and was named Mill Town. The town, as it is today, soon after became known as Milton. The two principal property owners of the young town were the Martins and the Fosters. The current site of Milton's town hall was donated from Mr. Hugh Foster (and thus, Hugh Foster Hall).
Milton was incorporated into a town in 1857, after being chosen as county seat for Halton. In 1974, the present municipal structure was created when the Regional Municipality of Halton, replaced Halton County. The new town of Milton added parts of the former township of Esquesing (most of this township comprises Halton Hills), all of Nassagaweya Township including the village of Campbellville, and the northern sections of Trafalgar and Nelson from (a 1962 annexation of the former townships) Oakville and Burlington respectively.
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