The settlement of Bawlf was a results of the Canadian Pacific Railway's route through the prairies, with the original survey for the community taking place in 1905 on land owned by Gilbert Hansen. The first train to arrive to the community would occur in 1906, and regular passenger and freight service between Edmonton and Winnipeg would begin by 1909. The Village of Bawlf would be incorporated by the Province of Alberta on October 12, 1906, however an overseer would administer the community until 1908 when the first village council was elected. The first elected council consisted of R. H. Anderson, P. O. Paulson, and Edwin C. Hardy.
The town was originally called Molstad. The name was changed to Bawlf on May 1, 1907.
The town was named after Nicolas Bawlf, the president of the Winnipeg Grain Exchange.
The Post Office opened on April 1, 1904.