Founded in 1830 on an abandoned station of the London Missionary Society, and initially named Toverberg after a nearby hill, it was renamed Colesberg after Sir Galbraith Lowry Cole, then Governor of the Cape Colony.

Anglican officials in Cape Town appointed Dr CEH Orpen as rector and the first services were conducted in the Court House and the London Mission Chapel, which became known as St Stephen's Church.

[4] Michael Davitt wrote while documenting the Second Boer War, that the previous generation noted the village as a rendezvous for hunters and diamond miners.

Colesberg is renowned for producing high-quality racehorses and many stud farms, including one owned by legendary golfer, Gary Player, are nearby.

Small industries are located in town, including a sheep abattoir, a factory which makes a range of furniture to order and a panel beater.