The first known European-Americans to visit the area, a valley just northeast of Mount Timpanogos, were members of a fur-trapping 1824 brigade led by Étienne Provost, a French-Canadian. The area was referred to as upper Provo, and is also the name of the river running south through the valley.
A wagon road was completed through Provo Canyon in 1858 which brought the first settlers to the area. Two small communities were established: Mound City and a lower settlement sometimes referred to as Smiths Grove. Mound City was named for the many nearby limestone formations. Smiths Grove was first settled by the Robey, Epperson, Bronson, McCarroll, and Smith families.
Indian hostilities grew, and territorial governor, Brigham Young, encouraged settlers to build forts for protection. The two settlements built a fort, “midway” between the two communities. In the 1860s and 70s, a large number of Swiss immigrants arrived, including the Gertsch, Boss, Huber, Kohler, Probst, Zenger, Durtschi, Krebs, Murri, and Abegglen families. Descendants of some these families still live in Midway.
Midway was incorporated June 1, 1891; its industry based on livestock and farming. As the town grew, so did the need for building materials. In the early 1850s, sawmills were built, operated by Henry T. Coleman, John Watkins, and Moroni Blood. John H. Van Wagoner constructed the first commercial gristmill in 1861. Bonner Mercantile Store was the first retail store.
Civic improvements were made in the 1930s and 1940s, including a concrete sidewalk program started in 1938. The Midway Recreation Center, called the “Town Hall,” was dedicated in June 1941, and is the center of many community events, including Swiss Days. In 2011, Town Hall received a seismic upgrade including reinforced walls, a new roof, and re-pointing of its pot-rock (tufa) exterior. At the same time the building received a new heating system, air conditioning, and a much needed exterior-trim paint job.