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The settlers of Melfort established themselves on the banks of Stoney Creek, just 1.2 miles away from the current location of Melfort, after being there there was a relocation due to the surveying of the Canadian National Railway. The name of Melfort is in honor to Mrs. Reginald Beatty, who was wife of one of the early settlers. She was born on Melfort estate in Argylshire, Scotland.
The community became a village in 1903, and in 1907 it was incorporated as a town. After being incorporated as a town, Melfort was declared the twelfth city of Saskatchewan. The first post office in Melfort was established in August 1, 1982 , in the provisional district of the North West Territories. The name of the first postmaster was Benjamin Bothwell.
Melfort is near a large diamond exploration site. The ongoing diamond exploration by a joint venture between Shore Gold Inc. and Newmont Mining Corporation of Canada in the Fort à la Corne district is expected to begin mine construction in 2012. Melfort is called "The City of Northern Lights" due to the frequency with which the aurora borealis appears.
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