Originally called McQuilkinsville, then simply Macksville or Maxville, West Terre Haute was laid out by Samuel McQuilkin on November 22, 1836.

The first building had been put up in 1833, and in 1834 McQuilkin opened a general store on the National Road between present-day Third and Fourth Streets.

The store proved useful to those working on the National Road and made McQuilkinsville an important town in the area.

[5] John Griggs and his son Edward put up a flour mill in 1867, but the structure was burned in 1870.

[8] By 1878, industries included a lumber mill, a cigar factory, and a shingle manufacturer, and the town had grown to a population of 250.

By 1906, West Terre Haute had eleven mines in operation, served by both railroads and wagon roads.

Just north of West Terre Haute was a large gravel pit a mile in length at its widest point.

To accommodate these new residents and commuters, in 1905 a new bridge was built to cross the Wabash River including tracks for the city's streetcar and interurban line.

Beginning in the early 1920s, the coal, clay and gravel industries slowly declined.

West Terre Haute became a mainly residential community for factory workers and miners.

After the Great Depression, the town's businesses included automobile repair shops and grocers.

According to the 2010 census, West Terre Haute has a total area of 0.75 square miles (1.94 km2), all land.

[13] West Terre Haute is the last community in Indiana encountered travelling westbound on US 40 before crossing into Illinois.