The traditional Aboriginal inhabitants of the land now known as the Canterbury-Bankstown were the Dharug (Darag, Daruk, Dharuk) and Eora peoples.

Early indigenous groups relied upon the riparian network of the Georges River and Cooks River catchments towards Botany Bay, with extant reminders of this lifestyle dating back 3,000 years including rock and overhang paintings, stone scrapers, middens and axe grinding grooves.

[4][5] Following the arrival of Europeans in 1788, the new British settlers in the area burned oyster shells from the middens along Cooks River to produce lime for use in building mortar.

[7] With the passing of the Belmore to Chapel Road Railway Act in 1906, the line was extended further to Lakemba, Punchbowl and Bankstown by 1909.

However, over time, Campsie became a more important centre, particularly along Beamish Street and Canterbury Council planned a gradual move of civic services there when funds became available.

[10][11][12] The City of Canterbury was proclaimed on 16 November 1993 by the Governor of New South Wales, Rear Admiral Peter Sinclair.

[13] The petition was subsequently accepted and the "Municipal District of Bankstown" was proclaimed by Lieutenant Governor Sir Frederick Darley on 7 September 1895.

[23] At the ordinary council meeting on 28 November 2023, it was resolved that council would halt all work, and financial spending, on preparing its implementation plan to de-amalgamate, until such time the NSW Government gave an iron-clad commitment to fully fund the cost of any de-amalgamation, and all ongoing costs.

In 2021–22, the City of Canterbury-Bankstown had an estimated Gross Regional Product (GRP) of $16.7 billion, making it the eight largest economy in the state.

The City of Canterbury-Bankstown is home to the largest postal distribution centre in the Southern Hemisphere, which is operated by the Australia Post.