The community of Cornwall traces its history to European settlement in the 18th century and was a predominantly farming community until the construction of Route 1, the Trans-Canada Highway, during the early 1910s. Several subdivisions were created near the intersection of the new highway with the Meadowbank Road, along with a small commercial strip.

On April 1, 1995, the incorporated communities of Cornwall, Eliot River, and North River amalgamated to form the Town of Cornwall.

The amalgamation did not see many controversies. The name of the community of Cornwall survived although the legislation designated the new town as Charlottetown West but amid the call of some residents for a new community name, as was occurring in the case of Stratford (also amalgamated at the same time as Charlottetown South), the community decided to rename the town Cornwall once again.