The town itself was founded by General Engineering Co Limited (later Noranda; now part of Xstrata) after staking claims in 1953 in support of a copper mine.

In the early 1980s, gold was discovered at Hemlo,[5] near the intersection of highways 614 and 17, about 50 kilometres (31 mi) south of the town.

[6] While mining has always been at the forefront of the economic activity of Manitouwadge, forestry also plays a significant part in the Town's economy.

The town is currently seeking new industry and residents and offers some of the lowest housing and commercial property prices in Ontario.

The Township boasts year-round outdoor recreation including a 10-run ski hill; snowmobile trails; excellent summer and winter fishing; kilometers of ATV trails, canoe and kayak routes.