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Charlottenburgh and Lancaster were two of the original eight "Royal Townships" established along the Saint Lawrence River in Upper Canada in the 1780s. This area was first settled by United Empire Loyalists. The development of this area was encouraged by Sir John Johnson, a wealthy landowner loyal to Britain, who was forced to abandon his land holdings in New York State during the American Revolution.

Johnson built a house in Williamstown near the end of the 18th century, The Manor House, which is now a Canadian National Historic Site. A grist mill and saw mill, now gone, were also built on the same location. Williamstown also contains the oldest log house in Ontario which was built in 1784. Occupants over the years have included the Reverend John Bethune, the great-great-grandfather of Doctor Norman Bethune, and David Thompson, Canadian explorer.

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