The town of Stettler was named after Carl Stettler, a native of Switzerland who came to Alberta in 1903 and lived on a homestead 2 miles (3.2 kilometres) east of the present site of Stettler. His homestead was the centre of a Swiss-Germany colony that set up a hamlet with a post office on his land in 1905. The post office was named "Blumenau" and Carl Stettler was the first postmaster.
In the spring of 1906, Carl Stettler built the National Hotel on the site of the present Stettler Hotel. This hotel burned down in 1908 and he started to build another, the National Hotel, on the same site in 1909. The hotel was only partly built when he sold it to R.L. Shaw who completed the hotel. In 1942 The National hotel burned down and was replaced by the Stettler Hotel in 1948. Mr. Wilson Pyper built the first hotel on Railway Avenue, the Alberta Hotel.
Stettler officially became a village on June 30, 1906 and became a town in November 23, 1906. The first school was held in J.B. Griffith's warehouse and the first school building was constructed in 1907.
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