Like many agricultural communities across southeastern Alberta's "Palliser's Triangle," Faith was founded during the early 20th-century homesteading influx. Settlers came to take up $10 quarter-section (160-acre) land grants offered by the Canadian government.

A small central hub developed to serve local farming and ranching families. The community included a local general store, a school district, and community meeting spaces.

The Faith Post Office was established on May 1, 1911 to process and distribute mail to surrounding homesteaders. The first postmaster was James Sergeant, who held the position from 1911 until 1913. The town was named after the daughter of the first Postmaster.