Before 1865 only Indians lived in this area, the home of the Cree. Beaverhill Lake (known then as Beaver or Beaver Hills Lake) was full of fish and wildfowl. A variety of wild fruits could be eaten fresh or added to pemmican. Big game animals, including herds of buffalo, were available for food and clothing.

Tofield's Indian legacy is evident in the names of local creeks: Maskawan, Amisk and Ketchamoot. The latter refers to Chief Ketchamoot who came from Ft. Pitt in 1860 to help the local Crees against their traditional Blackfoot enemies. Victorious, he remained in the area, and is buried on the bank of the Ketchamoot Creek.

Tofield is named after the pioneer medical man, Dr. J.H. Tofield, who came to the area in 1893.

Tofield's first school was organized in 1890 and named McKenzie School in honor of the first postmaster in the area, at the Logan post office. The Tofield Post Office was obtained in 1897, and was located at the south end of Beaverhill Lake.

The town of Tofield had its beginning in 1906 when Morton and Adams built a General Store near the Post Office at a site southeast of present day Tofield. By the spring of 1906 other businesses, including a lumber yard, hardware store, another general store, a drug store, a blacksmith shop and a hotel, had been founded.

Very soon after that, the town moved to a site northwest of the old site and north of the present townsite when the Edmonton-based company Crafts and Lee offered free lots that were near the site of the proposed route of the Grand Trunk Pacific Railroad. By fall of 1908 two blocks of businesses were filled and all residential lots were full.

Later that year the G.T.Pacific railroad decided on a route south of the second townsite and the town moved again, to its present location. Tofield was proclaimed a village on September 9, 1907 and became a town just two years later in 1909.