The settlement of Dahinda in southern Saskatchewan commenced after 1905, as part of the extensive homesteading wave that drew pioneers to the Canadian prairies under the Dominion Lands Act of 1872, which offered 160-acre plots to eligible settlers for a nominal fee in exchange for cultivation and residency. This legislation facilitated the rapid influx of immigrants seeking agricultural opportunities on the fertile plains, with early arrivals in the Dahinda area establishing isolated farmsteads amid the open grasslands.

The community's formal establishment was marked by the opening of the Dahinda post office 0n November 1, 1908, located in Township 9, Range 23, West of the Second Meridian, which provided essential mail and communication services to the growing number of homesteaders. This development coincided with broader railway expansion across southern Saskatchewan, as lines like those of the Canadian Pacific Railway encouraged settlement by improving access to markets and supplies, though direct rail service to Dahinda arrived later.

Between 1908 and 1910, initial infrastructure took shape through the construction of basic farmsteads and rudimentary community structures, reflecting the pioneer patterns of self-reliant agrarian life in the region. Romanian immigrants, who formed a significant portion of the early settlers in the Kayville-Dahinda bloc, contributed to this foundational phase by replicating ethnic farming communities from their homelands.

Following the initial settlement in the mid-1900s, Dahinda experienced significant expansion in the 1910s and 1920s as Romanian immigrants from regions like Bucovina, Transylvania, Banat, and Dobrogea established homesteads under the Dominion Lands Act, claiming 160-acre plots for a $10 fee and focusing on breaking prairie sod for farming. By 1910, the area attracted secondary migration from U.S. Romanian communities, with families like that of Pavel Vulcu arriving in 1907 and building multi-generational farms. Small businesses emerged alongside agriculture, including general stores and blacksmith shops, supporting the influx that made the Kayville-Dahinda region the largest Romanian concentration south of Regina by 1906.

The peak period from 1920 to 1940 saw Dahinda's community life flourish amid Saskatchewan's agricultural boom, with over 80% of Romanian settlers engaged in homesteading and the provincial Romanian population growing to 9,530 by 1931. Grain farming, particularly wheat, dominated the local economy on the fertile Regina Plains, supplemented by livestock rearing for self-sufficiency, though challenges like 1930s droughts tested productivity. Local farmer J.C. Mitchell exemplified this era's success, winning the World's Best Wheat Prize three times by 1925. Community events centered on religious gatherings, such as infrequent priest visits and church dedications, fostering social bonds in isolated homesteads.

World War I spurred demand for Saskatchewan grain exports, boosting farm incomes and encouraging mechanization, but it also restricted immigration after 1914, limiting Dahinda's growth to internal family expansions. During World War II, 39 young residents from the Kayville-Dahinda area enlisted, contributing to wartime food production efforts while facing labor shortages on farms; returning veterans nearly doubled local parish memberships post-1945, revitalizing community ties. Social life included formation of church-based groups like the Ladies’ Auxiliary “Sf. Maria” in 1936, which organized maintenance and events with 28 members by 1939, alongside choirs led by cantors such as Paul Vulcu.