Created in 1683 by the Maryland legislature, London Town became an important tobacco port and a major player in the colonial trans-Atlantic trade network. It also served as an important ferry crossing on the main north-south route in the colonies, connecting Charleston, South Carolina with Boston, Massachusetts. The town was laid out on 100 acres, overlooking the South River. Roads were created, including Scott, Mackelfish, and Fish Streets among others and 100 one-acre lots were platted. As a center of transportation and trade, London Town reached its heyday in the 1720s, rivaling nearby Annapolis in terms of economic activity. The Anne Arundel County courthouse was located in London Town from 1685 until 1695 when the court moved to Annapolis.

The prominence of London Town began to fade in the mid-1700s and with the lack of trade during the American Revolutionary War, the port town simply could not survive. Once a vibrant town, consisting of 30 to 40 occupied lots and an estimated population of 300 people, London Town began to disappear from the landscape. Only a few buildings lasted into the 20th century, one of which is the impressive brick building, known as the William Brown House, built circa 1760 as an upscale tavern for travelers crossing the South River by ferry boat. Today, the park consists of one-quarter of the original 100-acre town and now holds as a museum that hosts hundreds of events each and every year.