The first white settlers arrived in the area in 1887. The town was originally called "Razorback", but was renamed following a community meeting. The name Montville was proposed by storekeeper Henry Smith (who bought a selection of land there in 1893) after a suggestion by his mother, as it reminded her of their early years in Montville, USA. Alternatively it is a coined word from "mont" meaning "mountain" and "ville" meaning "town". The name was officially changed to "Montville" on 30 November 1897.