[2] It was formed by the Government of Prince Edward Island, then led by Premier Alex Campbell, in 1969 as a result of an education reform policy undertaken as part of the Prince Edward Island Comprehensive Development Plan, which saw the closure of the province's two post-secondary institutions structured along religious lines: St. Dunstan's University and Prince of Wales College.

It also led to the creation of the nondenominational University of Prince Edward Island (UPEI) and Holland College.

In 2015 the college began to focus increasingly on enroling international students on study visas.

[3] The enrolment of international students increased over the following years with the college unable to provide adequate housing by 2023.

In 2010, the college joined Project Hero, a scholarship program cofounded by General (Ret'd) Rick Hillier for the families of fallen[clarification needed] Canadian Forces members.