The original settlement, known as Gravelly Bay, dates from 1832 [7] and was renamed after Sir John Colborne, a British war hero and the Lieutenant Governor of Upper Canada at the time of the opening of the (new) southern terminus of the First Welland Canal in 1833.

In pre-colonial times, Indigenous people of the Onguiaahra (Neutral Iroquois) lived in the area, due in part to the ready availability of flint and chert from outcroppings on the Onondaga Escarpment.

[10][11] In the year 1888, American tourists from the Southern states began building vacation homes on the lakeshore of the Western edge of the town.

Over 30 grand summer homes, along with a variety of clubhouses and service buildings, were built along the lake in the following years, many of which still stand today on historic Tennessee Avenue.

[30] Maritime commerce, including supplying goods to the camps for the labourers who worked on the first canal, ship repair and the provisioning trade, was, and still is, an important part of Port Colborne's economy.

As recently as 2017, Port Colborne has been successful attracting new industry, such as the agro-business operations of Casco Inc.[37] and Jungbunzlauer,[38] which process corn into products such as sweeteners and citric acid.

The International Nickel Company (now Vale) has long been one of the city's main employers, since a World War I scandal prompted the opening of a refinery in 1918.

[39] Taking advantage of inexpensive hydroelectricity from generating stations at nearby Niagara Falls, from 1922 the refinery produced electrolytic nickel and Platinum group metals.

Originating as a small fair held at the Port Colborne Historical and Marine Museum, it has grown to feature live music, an antique car show, fireworks, tall ships, a kite festival, and international foods.

[citation needed] The Port Colborne Historical and Marine Museum, located near the centre of town, is a resource for local history and archival research.

[48] Tourism is important to the Port Colborne's economy, aided by the city's proximity to Lake Erie beaches and marinas, and to Niagara Falls.

[49] Described by the city as "Niagara's South Coast", Port Colborne features live theatre, golfing, multi-use trails, fishing, beaches, restaurants, recreation, a marina, and shopping districts along the Welland Canal.