It is the transportation and commercial hub of the West Coast area and administrative centre of the Saldanha Bay Local Municipality.

The town's original name was "Twisfontein", which from Afrikaans can be translated as "dispute fountain".

[3] This name came about when two competing farmers fought over the only available freshwater spring in the area.

The town was renamed as they were discussing the matter of the freshwater spring and were trying to come to an agreement.

When this agreement was settled and they have achieved a sense of peace among one another, the name "Vredenburg" was chosen.