The original site was a Neutral Nation village known as Onghiara In 1781 the British government established Butlersburg which later became known as West Niagara. Many of the first white inhabitants were Loyalist refugees who fled the United States during and immediately after the American Revolution wanting to remain loyal to Britain.
In 1792 the village was incorporated as the Town of Newark and was named the capital of the Province of Upper Canada. The town lost that distinction to York (now Toronto) in 1797, as Newark's proximity to the United States presented a danger. The town was renamed Niagara in 1798. During the War of 1812, American forces invaded Canada, and captured (and later destroyed) the town before they withdrew following their abandonment of captured Fort George. The British rebuilt, however, and today it has retained much of its historical charm. The present name was adopted around 1880 as a Postal Address to distinguish the town from Niagara Falls. The name was not officially adopted until 1970, when the Town of Niagara and the Township of Niagara were merged.
Most of the former military sites, such as Fort George, Navy Hall, and Butler's Barracks, have been restored. Fort George's restoration was done as a "Make Work Project", guided by plans from the Royal Engineers, during the Great Depression of the 1930s, an early example of historic preservation. Fort George National Historic Site is a focal point in a collection of War of 1812 sites which, collectively, are managed by Parks Canada under the name Niagara National Historic Sites. That administrative name includes several national historic sites: Fort Mississauga, Mississauga Point Lighthouse (1804, the first on the Great Lakes), Navy Hall, Butler's Barracks, and Queenston Heights.