In 1852, shortly after this region was opened for settlement, the government reserved land for a town here on the Elora and Saugeen Road, at the confluence of the Teeswater and Saugeen Rivers. Already settled on the site were Simon Orchard and Samuel Rowe and later that year John Valentine built a saw-mill here. The townplot, named Paisley, was surveyed in 1855 and within two years a community of about 150 had developed. By 1867 additional industries, including a foundry and a woollen mill had been established and the village's handsome buildings reflected its prosperity. The Wellington, Grey and Bruce Railway was completed through the community in 1872. Two years later, with over 1,000 inhabitants, Paisley was incorporated as a Village.