It comprises the former Township of East Luther and the former Village of Grand Valley.

The town is located within Dufferin County, and includes part of the Luther Marsh.

The Town of Grand Valley comprises a number of villages and hamlets, including the following communities such as Colbeck, Damascus, Grand Valley, Leggatt, Monticello, Peepabun, Tarbert; Erasmus, Hill Settlement, Keldon, Wesley; Chatter's Corners, Doyle's Settlement The formation of the town under the name Township of East Luther Grand Valley was a result of an amalgamation effective January 1, 1995, of the Township of East Luther and the Village of Grand Valley.

[2] Grand Valley was hit by an F4 tornado on May 31, 1985, that destroyed much of the town's infrastructure, which has since been rebuilt.

The Grand Valley B.I.A., is the smallest Business Improvement Area in Ontario.