The current city of Melfort was preceded by a small community known as the Stoney Creek Settlement, started by founding settler Reginald Beatty, a Hudson Bay Company employee who settled with his family in the new North West. After squatting for a period near what is presently known as Birch Hills, Mr. Beatty desired to relocate near running water and in a better hunting area. During the summer of 1884, on the advice of Indian friends, Beatty and his family homesteaded on the banks of Stoney Creek. The Stoney Creek site was within an area whose agricultural potential may have been discovered as early as 1753 by French explorer Chevalier de la Corne, who reportedly experimented successfully with grain crops during his time in the Carrot River Valley Region.
The new town developed rapidly and furrows were ploughed for Main Street by late October. Having secured one of the first plots available, Ed Crawford erected Melfort's first structure in 1902 - a general store. The Clift Brothers, who in 1907 built the landmark Pioneer General store, would later purchase the site. Others soon followed with similar entrepreneurial enthusiasm and spirit.
Melfort was officially incorporated as a village in 1903. The promised rail reached the community in 1904, facilitating steady population growth. According to a census taken July 21, 1906, Melfort at the time was home to 448 residents. By 1907, Melfort's population was of sufficient number to justify its official incorporation as a town, which occurred on July 1 of that year, and became Saskatchewan's 12th city on September 2nd, 1980.