The largest farming groups in what would become New Toronto were the Northcote family to the east around where Seventh Street/Islington Avenue meets Lake Shore Blvd and the Goldthorpe family to the west at Mimico Avenue (now Kipling Avenue) where the Mimico Insane Asylum was later built.

New Toronto was outlined as a working town in 1890. This plan became a reality in 1906 when the Grand Trunk Railway opened repair shops, a roundhouse and a freight yard in New Toronto.

The railway draw industry to New Toronto. The areas largest employer was the Goodyear Tire and Rubber Company which established a manufactory here in 1917.
New Toronto's quick development led to its incorporation as a Town in 1920. Frank Longstaff, in Villages of Etobicoke, recalls that during this period of prosperity, New Toronto publicized itself as having the "highest value of manufacturing per square mile in North America."

In 1929, the New Toronto fire station was built. Layed out in an Italianate style, it was also used as the Town Hall for a time. It is still a fire station today.

In 1953 the Lake Shore municipalities (Mimico, New Toronto, Long Branch) were severed from York County along with the other municipalities south of Steeles Ave to create a new 'urban' region: Metropolitan Toronto (Metro).

In 1967, New Toronto was amalgamated with the old Township of Etobicoke, however it never lost its sense of identity as a working class town.

In the 1990's the local industry is gradually being replaced with new home developments which are bringing more professional people to this neighbourhood.