Before large-scale Han Chinese settlement, the Taoyuan plateau was inhabited by Taiwanese indigenous peoples, primarily the Pingpu (Plains) tribes such as the Ketagalan and Taokas, while the mountainous areas were home to the Atayal people. The area was originally called *Hobe* by the indigenous people.
During the Qing dynasty, Hakka and Hokkien immigrants from mainland China began settling the region. They planted many peach trees, leading to the name *Taoyuan*, which literally translates to "peach orchard." To support agriculture on the plateau, early settlers constructed an extensive network of irrigation canals and ponds, fundamentally altering the landscape and economy of the region.
During the Japanese colonial period (1895–1945), the area saw significant infrastructure development. The Japanese formalized the irrigation systems, built the Taoyuan Canal, and connected the region to the western trunk railway. In 1920, the administration was reorganized, establishing Taoyuan Town.
Following World War II, Taoyuan underwent rapid industrialization, transforming from a largely agricultural county into a manufacturing powerhouse. The opening of the Chiang Kai-shek International Airport (now Taoyuan International Airport) in 1979 cemented its status as Taiwan's primary international gateway. Due to its booming population and industrial output, Taoyuan County was upgraded to a special municipality, Taoyuan City, on December 25, 2014.