A small settlement, "Sconeville", developed here following the erection of mills on the Saugeen River by Adam Elliot in 1858-59. A post-office, named after Solomon Chesley, a former Indian Department official, was established in 1865 and three years later village lots were laid out by Elliot's son, John. The hamlet quickly matured into a thriving community. In 1879, with over 900 inhabitants, it was incorporated as a Village and council meetings commenced in 1880. A branch of the Grand Trunk Railway, completed to Chesley the following year, facilitated its development as an important centre for several agricultural businesses and the shipment of produce, livestock, lumber and bark. By 1885, Chesley's population had risen to 1,400 and in 1906 it became a Town.