Hayter was established in 1909 as a railway siding in the Provost district of central Alberta, coinciding with the extension of the Canadian Pacific Railway line from Hardisty to the east. This development facilitated the influx of homesteaders seeking arable land in the region, part of the broader wave of settlement spurred by the Dominion Lands Act and railway expansion in western Canada. The community's name derives from the president of Canadian Pacific Hotels, underscoring the railway's pivotal role in naming and shaping early prairie outposts.

Early pioneers, primarily from Ontario, the United States, and Europe, arrived via the new rail connection to claim homesteads and begin breaking the virgin prairie sod for wheat cultivation. Local historical accounts describe the arduous tasks of these settlers, who endured harsh weather and isolation while constructing sod houses and rudimentary farms; for instance, families like the McKenzies and Thompsons are noted for their initial claims in the Hayter area around 1910. The book Early Furrows: A Story of Our Early Pioneers in Provost, Hayter, Bodo, Alberta and Surrounding Districts compiles these narratives, highlighting communal efforts to clear land and establish mutual support networks amid the challenges of frontier life.

Initial infrastructure developed rapidly following the railway's arrival, with the first post office and general store opening on August 15,1909 to serve arriving settlers. By 1911, basic buildings such as a grain elevator and several frame residences had been erected, enabling the storage and shipment of early harvests. These foundational elements laid the groundwork for Hayter's role as a modest agricultural hub, drawing on the railway for essential connectivity to larger markets in Provost and beyond.

During the interwar period and following World War II, Hayter experienced gradual growth tied to agricultural expansion in east-central Alberta, with settlers focusing on mixed farming and grain production that supported community building through local cooperatives and infrastructure improvements. The formation of the Municipal District of Provost No. 52 in 1943, which incorporated Hayter as a hamlet, marked a key transition, providing administrative stability and access to regional services amid broader rural consolidation in Alberta.

Post-war economic trends significantly influenced Hayter's stability, particularly through oil and gas exploration in the region; by the late 1940s, local production contributed to Alberta's burgeoning petroleum industry, with Hayter recording notable output that bolstered farm incomes and attracted temporary workers. In the late 20th century, some new housing was constructed in the community, though population declined to 84 as of the 2021 Census. Efforts to preserve pioneer heritage continue through local history publications and events organized by the Municipal District.