The community of Teeswater began to take form in 1856 when the owners of farm lots 15 and 16 on concessions 6 and 7 of Culross Township had a survey made of a portion of their farm lots dividing them into village lots. The first mill dam was erected in the summer of 1855, and in the fall of that year a sawmill was also operating. These mills, with ample water power, along with the establishment of a post office in September 1856, set the foundation of the development of the village. The railway reached Teeswater in 1874. On June 5, 1874, Bruce County Council passed a by-law authorizing Teeswater’s incorporation as a village, which became effective on June 1, 1875.

In 1998, the Township of Culross and the Village of Teeswater amalgamated to form the Township of Teeswater-Culross. The following year, Mildmay-Carrick amalgamated with Teeswater-Culross to form South Bruce, choosing Teeswater as the seat of the municipality.

Sources:
Robertson, Norman. “The History of the County of Bruce and of the minor municipalities therein.” Toronto: William Briggs, 1906.
McLeod, Norman. “The History of the County of Bruce 1907-1968”, vol 2, Bruce County Historical Society, 1969. Print.