It lies south-east of Muar (a royal town), south-west of Kluang, north-west of Pontian and south of Segamat.

The origin of this name can be traced back to a local lore in the 1546, when the invading Siamese troops led by Admiral Awi Di Chu were chiselling rocks at a rocky spot in the coastal village of Kampung Minyak Beku, in hope of getting fresh water during their siege on the Malacca .

Shah (Simpang Kiri) requested audience with Sultan Abu Bakar to develop a township in Batu Pahat.

[citation needed] They believe that Dato' Bentara Luar will once more duplicate the success of Muar known by other name, Bandar Maharani into new up and coming township.

On 4 November 1892, Sultan Abu Bakar orders Dato' Bentara Luar who was then living in Kampung Senangar to come over to Johor Bahru palaces to seek for an audiences related to new township development matters.

[citation needed] The next month, Dato' Bentara Luar started on the Batu Pahat township development.

[citation needed] He chooses the development places in Simpang Kanan parishes which are about 15 km away from Batu Pahat river bay.

The locations is strategic as the river's berth are wide enough to let the ship passing thru as well as the construction of docks will facilitate the trading in that areas.

Within the next year, he succeeded in building up roads, offices, courts, hospital, police stations and also homes around that area.

The development is sustained by the finances support by Orang Kaya Bagan, taxes from local populaces and as well as the personal wealth of the Dato' Bentara Luar himself.

Batu Pahat Chinese community usually converse in Southern Malaysia Hokkien or Mandarin due to its media reception in the area.

In Batu Pahat, there are several religious faiths and the major ones are Buddhism, Taoism, Confucianism, Islam, Christianity and Hinduism.

A historic mosque located in the Town of Batu Pahat is Masjid Dato Bentara Luar, built in the 1930s.