The town's name is conjectured to derive from 'Twy-ford-ton' or 'Twyverton', meaning 'the town on two fords', and was historically referred to as 'Twyford'. The town stands at the confluence of the rivers Exe and Lowman. Human occupation in the area dates back to the Stone Age, with many flint tools found in the area. An Iron Age hill fort, Cranmore Castle stands at the top of Exeter Hill above the town, and a Roman fort, or rather marching camp, was discovered on the hillside below Knightshayes Court near Bolham, just to the north of the town. It was also the site chosen by Henry I for a Norman castle, Tiverton Castle first built in 1106 as a Motte and Bailey type and extensively remodelled in the 13th and 14th centuries.

.A small settlement soon sprouted up around the castle and later the town grew in importance and prosperity on the back of Devon's burgeoning wool trade,the fast flowing rivers proving ideal for powering the local mills. In the 18th Century the wool trade declined but in 1815 the industrialist John Heathcoat set up a lace making factory. This industry really took off and Tiverton again flourished to become one of Devon's prime industrial centres.Trade was aided when a branch of the Grand western Canal from Tiverton to Lowdwells was opened in 1814, with an extension to Taunton in 1838, followed by a branch of the Great Western Railway in 1848.

Today, Tiverton is the largest town in mid Devon and has a small but busy shopping centre. The imposing structure of the parish church dedicated to St Peter dates from the 15th century and reflects the prosperity brought to the town by the wool trade. There are fine carvings of anchors, waves and ships of all types and even Barbary apes. The town has some well preserved old merchant's houses. Blundell's School was founded by back in 1640 by a local merchant and converted to dwelling houses in 1880.