Settlement in the Ohaton area emerged as part of the agricultural expansion in central Alberta during the early 20th century, building on earlier homesteading by Norwegian Lutheran pioneers from Minnesota and South Dakota who arrived in the surrounding district starting in the 1890s. The community's development accelerated with the subdivision of the Ohaton townsite in 1905, spurred by the extension of the Canadian Pacific Railway, which opened the prairie lands to further settlement.

The establishment of the Ohaton post office on September 1, 1906 marked a key milestone, functioning as the primary hub for mail, communication, and social interaction among early residents. The unique name "Ohaton" originated as a portmanteau of the surnames Osler, Hammond, and Nanton, referring to the partners in the prominent Winnipeg-based financial firm Osler, Hammond & Nanton, which played a significant role in financing western Canadian development. This naming pattern connects to the town of Nanton in southern Alberta, which was named in honor of Augustus Meredith Nanton, a leading partner in the same firm.

Ohaton was incorporated as a village in Alberta, Canada, prior to 1946, during which time it maintained a local government responsible for managing community affairs such as infrastructure maintenance and public services. The village dissolved effective January 1, 1946, reverting to unincorporated hamlet status and having its lands annexed to the Municipal District of Camrose No. 22 (now Camrose County). This transition marked the end of Ohaton's independent municipal authority, with governance and services thereafter integrated into the broader county framework, including shared taxation, road maintenance, and administrative oversight.

During its time as a village, Ohaton supported key community institutions, exemplified by the Ohaton School, which was constructed in 1909 and served students until its closure in June 1956. The school's bell, preserved as "The Bell Tower," symbolizes the enduring legacy of local education amid the shift to county-wide operations post-dissolution.