Football has been established in Welshpool since 1878 following a match the previous year between a town selection and Newtown's Second XI. This match resulted in a 0-0 draw but Welshpool went one better in the year of their formation by winning 2-1 at the rival's grounds.

The club changed its name in the first ten years, firstly to Welshpool Wanderers and then to Welshpool Warriors, although the latter may have been a separate club.

The town was first represented in the Welsh Cup in 1885 but the result was a crushing 0-8 victory for visitors Oswestry White Stars, who went on to reach the final. At that time Welshpool played at Foundry Field, before moving to the Recreation Ground in 1895.

Welshpool AFC was re-established in 1889 and after one season as Welshpool United in the original Welsh League entered the Shropshire League in 1987-88, but how long they stayed in membership has remained elusive. They joined the combination for two seasons in 1907 but resigned probably due to the travelling costs involved.

Their League history after 1910 when they left that league is something of a mystery, surfacing again as members of the national League framework in 1921. They won the Central Section title in that first season but were not promoted. The move up to First Division (North) came at the end of the 1924-25 season. They were relegated without winning any honours at the end of the 1928-29 season and returned to Mid-Wales football.

On the resumption of organised football after the Second World War two seasons were spent in the Mid-Wales League before moving to the Welsh National League (Wrexham area) in 1949-50. Welshpool were champions in 54-55, 56-57, 61-62 and 64-65 returning to the Mid-Wales League for the 65-66 season. Subsequently there began a long period of success, winning the league on seven occasions and the Central Wales FA Cup five times. In 1971-72 they won the Welsh Amateur Cup by defeating Aberystwyth at Newtown. They were to win it again in 1977, 1983 and 1984.

1991-92 season saw them finish on top, 12 points clear of their nearest rivals. Disaster then followed when they were controversially docked a massive 66 points for fielding a player under suspension in England. This dropped them to bottom spot and presented the title to Caersws. Undaunted, they came back strongly to finish second to Llansantffraid the following year. With League of Wales their main goal, they contined the momentum and finished second again in 1993-94, but beat champions Rhyl 2-1 in the League Cup final. They regrouped in 1994-95, finishing ninth but won promotion the following year when they again finished second. This time the title went to Oswestry by one goal but the champions failed to meet League of Wales ground criteria and Welshpool Town AFC were promoted. They changed their name to Welshpool Town and despite a sprightly start slumped by the seasonís end to a position just outside the relegation zone. The next season saw Welshpool struggle in the bottom three for most of the season, and were eventually relegated.

During the 1998-99 close season a new executive committee was set up and a more local policy was introduced with plans to return to the League of Wales. The close season saw the installation of Russell Cadwallader as manager, and that appointment bore fruit as they finished fourth in the League, won the League Cup, Central Wales Cup and Montgomeryshire Cup.

The 2000/2001 season saw a slight improvement in the league with the club finishing in third place and reaching the last 16 of the Welsh Cup for the first time for many seasons, they were also runners-up in the League Cup. The semi-finals of the Montgomeryshire Cup and Central Wales Floodlit Cup were also reached but these competitions were not completed due to the foot and mouth epidemic.

Season 2001/2002 was extremely successful with the club achieving its prime objective ñ promotion to the League of Wales. The Central Wales Cup was again won by beating Kerry. Welshpool lost in the carried over final of the Central Wales Floodlight Cup, going down on penalties to old rivals Caersws. The Montgomeryshire Cup competition from the previous year was cancelled.

During 2002, the ground was upgraded to meet the criteria set by the League of Wales. Off the field the club became a limited company under the guidance of managing director Steve Hughes.

Welshpool were relegated from the Welsh Premier in 2003, but reinstated on appeal because no club was promoted from the Welsh League. They finished eighth in their first season back in the Cymru Alliance League.

The first season back was not a success and Town finished in the second relegation spot. However, because Neath AFC failed to meet the Welsh Premier's ground criteria for admission, Welshpool appealed against relegation and were reinstated.

They improved slightly in 2003/4 to 15th place, to ensure another season of Premier football at Maes-Y-Dre, but still parted company with manager Russ Cadwallader at the end of the campaign, appointing the experienced Tomi Morgan as replacement.

2004-05 season saw the club, still under the management of Tommi Morgan and Jimmy Hunter, finish in a creditable 9th position, thus gaining entry to the FAW Premier Cup for this season.

2005-06 season was another successful season with the club being in the top four of the league most of the season and vying for a UEFA Cup place. A spate of injuries and consequent bad run of results in the last few games of the season saw the club finish in 6th position with Carmarthen Town just edging the European place.  This season sees some new signings and hopefully another push for a European place.