New Norway’s history dates back to 1881, when a small mission was established just north of the present-day hamlet with the construction of St. Thomas Catholic Church—an iconic landmark that still stands today. The first settlers to the area were the Olstad brothers—Ludwig, Lars, Evan, and Ole—who immigrated from Norway and settled along the Battle River at what became known as Gould’s Crossing, later referred to as Olstad Settlement.

With the arrival of the railway in 1892, more settlers—primarily Norwegian, along with Swedish and German families—were drawn to the area, and in 1895 the community was renamed New Norway. One notable early settler, Gullik Iverson, built a traditional Norwegian log home in 1893 using dovetail corner joints; this structure still stands today as part of the Iverson Farmstead, now a Registered Historic Resource. By the early 1900s, the community had grown to include a blacksmith shop, general store, and the nearby Verdun School, which also remains a recognized historic site.

The construction of the Grand Trunk Pacific railway in 1909 prompted the relocation of the community closer to the rail line, sparking rapid growth. The townsite officially opened for sale on October 14, 1909, with 14 businesses established within the first month. New Norway was incorporated as a village on May 6, 1910, and continued to expand, reaching a population of 150 by 1912. Economic growth continued through the mid-1900s, supported by significant natural gas development in the region.

After more than a century as an incorporated community, New Norway transitioned to hamlet status under Camrose County on November 1, 2012, continuing its legacy as a historic and resilient rural community.