When Masterton was first settled in 1854 a 40-acre section was set aside as a "publick reserve" on the eastern side of what became Dixon St.
It became mixed up with the education reserves that formed its northern boundary and was not used as a recreation reserve for the first 20 years of the township. Henry Bannister, son-in-law of Joseph Masters, farmed the reserve, leasing it from the Wellington Education Board.
In 1868 the Government, concerned about growing tension between Maori and pakeha, built a stockade near the Dixon St line. It was never used as a redoubt but later held the town's first agricultural shows.
In the mid-1870s townspeople became aware that their reserve had been set aside wrongly and petitioned Parliament to have it returned to them. The government agreed and the empty paddocks were handed over to the fledgling Masterton Park Trust to administer.
Among their members was the energetic nurseryman and politician, William Wilson McCardle. He drew up a plan for the park, and the first trees were planted in 1877. Shortly afterwards, the first playing fields were constructed from the empty ground in the centre of the reserve, cricket and rugby players laying out the oval shaped playing grounds.