[3] The community was first established in the 1820s by Irish and Scottish emigrants of the Stubbs, Rayburn and Bell families.

The area flourished with industries like sawmills and gristmills, powered by the nearby Credit River.

[4] The main form of economic activity ties to agriculture and poultry.

For most of its history, Caledon Village was a hamlet (rather than an actual village), with the majority of the growth in the community having occurred in modern times, and most of the population lives in suburban-style developments.

There are currently ongoing small residential and industrial development plans around the village.