Colyton is named after Colyton in Devon, England, which had been the home town of the wife of William Cox Junior, son of the famous builder of the road across the Blue Mountains, also named William. The property of had been granted to Cox on 17 August 1819 by Governor Macquarie. It was located on the southern side of the Western Highway opposite the present Colyton Primary School. The land was only used for grazing and wheat growing. On 9 April 1842, a notice appeared in the "Sydney Herald" advertising the auction sale of William Cox's estate to form the 'Village of Colyton' with surrounding farmlets. The land was described as partly forest and partly alluvial with grass on it being 'abundant and nutritious'. The timber on the land was described as being fit for 'building and farming purposes' and the water 'abundant and never failing' from nearby Ropes Creek.