The first settlement area was prepared by Christian Nafziger, an Amish Mennonite from Pennsylvania, but originally from Germany.

After 1828, Roman Catholics and Lutherans from Alsace and Germany, Anglicans from Britain and others arrived and began to develop the area and construct buildings and roads.

Much of the area was settled by those of German heritage, but also included some of Scottish, English, and Irish origins; the latter groups owned land primarily in the southern third of the township.

William Scott, (Lord Campfield in Scotland), now considered to be the founder of New Hamburg, arrived in 1838, after Cushman's death.

In 1840, the township became part of the District of Wellington and received the right to elect officials and to tax land owners.

Existing villages included Hamburg and Haysville, and there were two grist mills and nine sawmills on the Nith River (previously called Smith's Creek).

[11][9] Some of the original settlements have Heritage signs indicating their location in the 1800s: Holland Mills, Josephsburg, New Prussia, Pinehill, Punkeydoodle's Corner, Rosebank, Victoriaburg, and Waldau.

[5] The township comprises the communities of Baden, Berlett's Corners, Foxboro Green, Haysville, Josephburg, Luxemburg, Mannheim, New Dundee, New Hamburg, New Prussia, Petersburg, Phillipsburg, St. Agatha, Schindelsteddle and Wilmot Centre, as well as most of Punkeydoodles Corners, a crossroads which straddles the municipal boundaries of Wilmot, East Zorra – Tavistock and Perth East.

[14] At the time of the 2016 Canadian Census, 79.2% of the population lived in single detached houses, higher than the 55.7% in the Region of Waterloo overall,[17] as well as the 48.6% in nearby Kitchener.

[19] Passenger trains on Via Rail's Québec City–Windsor Corridor pass through Wilmot daily, but run as expresses through the township and do not stop.

The route connects New Hamburg, Baden, and Petersburg to the Boardwalk bus terminal on the west end of Kitchener-Waterloo.

[21] After an initial pilot in 2016–17 which was funded by a provincial community transportation grant, the route was made a permanent part of the Grand River Transit system.