It was not until 1902 that a significant number of settlers arrived in this area of Alberta, mostly of British ethnic background coming from the east.

In 1904, a post office was established at Breage approximately 5 km (3.1 mi) east of the present townsite.

In 1911, the provincial government established three demonstration farms near Olds, Fairview, and just west of the Vermilion townsite.

The Vermilion Board of Trade had lobbied the government for a demonstration farm and or college.

[citation needed] Like other communities on the prairies in the early years of the 20th century, Vermilion experienced an extensive fire.

The economy is largely service industry to agriculture, with Education (Lakeland College) being a secondary economic driver.

It includes camping, fishing, canoeing and trails for hiking, cycling and cross-country skiing.

[citation needed] The town also attracts students from throughout Canada to Lakeland College.

[13] Lakeland offers certificate, diploma, applied degree, university transfer, apprenticeship, and pre-employment programs.