Founded in 1742, Hatfield Township was named for a Welsh hamlet in Hertfordshire, England. No records corroborate the town's naming after an early Welsh settler, John Hatfield, as some other sources claim. For most of its founding century, Hatfield was primarily a farming village in the countryside.

At the intersection of Forty Foot and Cowpath Roads, a hotel/tavern was constructed in 1819. A store was then built in 1827 on the southwest corner of Main and Vine Streets. However, the railroad line's completion on July 7, 1857, which connected Philadelphia and Bethlehem, was the catalyst for Hatfield's early development. Hatfield was brought to a halt on the line, and a phase of exponential expansion was initiated. At 176 acres, Hatfield was formally proclaimed a municipality in July 1898.

There once was a racetrack in Hatfield! Hatfield Speedway was first used for motor racing in 1921 after being a dirt horse track. Although the final race was staged about sixty years ago, many people still remember the thunderous sound of the racetrack!