Incorporated as a town in 1858, Collingwood was named after Admiral Lord Cuthbert Collingwood. Situated at the southern point of the Georgian Bay, the land was originally inhabited by the Iroquoian Petun nation. By 1650 they were forced out of their homes by the French-allied Algonquin. After European settlers arrived, Collingwood became a safe haven for black slaves travelling along the Underground Railroad.

Over the years, Collingwood was referred to by several other names. Due to its location at the end of Hurontatio Street, it was most often referred to as Hurontario; Nottawa was also a common name because of the close by Nottawasaga Bay, and finally Hens-and-Chickens Harbour because of the one large and four small islands in the bay.

After the construction of the Ontario, Simcoe and Huron railway, Collingwood’s access to the bay made it ideal for shipments to the upper Great Lakes ports of Chicago and Port Arthur-Ft. William (Thunder Bay). This produced a need for ship building and repairs, and in 1883 the Collingwood Shipyards opened with a special ceremony. In 1901 the shipyard launched, Huronic, the first steel-hulled ship launched in Canada. Employing 10% of the labour force in Collingwood, shipbuilding was the primary industry. The shipyard produced lake freights and small warships for the Royal Canadian Navy during World War II, however by 1986 overseas competition led to the demise of ship building in Collingwood. Five years later Collingwood bounced back, attracting eleven manufacturing firms through government incentive programs and a fully serviced industrial park. By 1983 eight more firms had relocated to the town making it the largest industrial employer in the region.