The ancient parish and commote are named Cedewain, and Newtown was home to a Llan dedicated to St Mary.

[7] Both the modern English name "Newtown" and its Latin variant "Nova Villa" first appear in the thirteenth century following the Norman invasion of Wales.

Robert Owen stated that the name was adopted to distinguish the town from the older centre of Norman power in Powys, at Caersws.

Tudur Owen [cy] noted that the modern Welsh name appears with the definite article as Y Drênewydd.

Owen stated that this was influenced by Newtown's status as one of only two New towns in Wales proposed by John Silkin in 1949.

[11] Its original Welsh name is derived from being situated near a River Severn ford below the Long Bridge and close to the church of St Mary in Bettws Cedewain.

[12] The area came to the attention of the English Crown in the 13th century when Llywelyn ap Gruffudd, Prince of Wales, created a new administrative centre (Welsh: cantref) at Dolforwyn Castle near Abermule following the Treaty of Montgomery between himself and Henry III.

However, it was not long after the death of Henry III in 1272 that tension arose with the English at their outpost of Montgomery Castle in the Welsh Marches.

He then granted Llywelyn's lands to the powerful Marcher Lord, Roger Mortimer, who transferred the administration of the cantref of Cedewain and the commote of Ceri from Dolforwyn Castle to a new settlement he planned to build further down the valley at Newtown.

[13][14] With the subjugation of the Welsh completed by 1282, Newtown was developed as an English plantation town as part of Edward I's policy known as the Ring of Iron.

[14] The town grew in the 18th and 19th centuries around the textile and flannel industry, stimulated by completion of the Montgomeryshire Canal.

It saw a large population growth as firms and people settled, changing its rural market town character.

[22] The Town Council has 16 elected members serving five-year terms, and employs a staff of about ten.

[21] Newtown lies about 8 miles (13 km) from the Wales-England border, in the narrow valley of the River Severn, which restricts development north and south of the town.

[citation needed] The villages include Aberhafesp, Adfa, Bettws Cedewain, Bwlch-y-ffridd, Cefn-gwyn, Dolfor, Glanmule, Kerry, Llanllwchaiarn, Llanwyddelan, Mochdre, New Mills, Pentre, Rhydlydan, Sarn and Tregynon.

The Robert Owen Museum is on the ground floor of the council offices in Brisco House, Broad Street.

The last recently received an outstanding Estyn inspection report in October 2015, praising many features, including teacher/sixth-form pupil relations and school support for a wide range of post-16 vocational and academic subjects.