The first settlement was founded in 1538, when a group of French Huguenots refugees, that came from Dieppe, a normand fishing port, safed haven on Saint Kitts island.

The original town only survived a few weeks before it was destroyed by the Spanish, but it was re-founded in 1625 by French settlers led by Pierre Belain d'Esnambuc.

Dieppe Bay Town is the co-capital of St. John Capisterre Parish along with Saddlers.

Originally the northern part of the parish was ruled by France, in the region of "Capisterre de St. Christophe", of which Dieppe was the capital.

The harbour was renowned on the island due to the large coral reef formations offshore which gave it strong protection against the heavy waves which tended to prevent Atlantic coast development elsewhere.