The farm Ruigtevlei was granted to a widow by Lord Charles Somerset and upon her death in 1878, the farm was divided into 9 lots. Lots A and B were first bought by individual farmers, before eventually being purchased in 1894 by John Barrington, son of then-famous politician, farmer and industrialist Henry Barrington.
John named the town in honour of his father’s birthplace Sedgefield in the United Kingdom.
The name of Sedgefield was but one of a number of names considered by farm owner Thomas Moodie. In the end, the fact that it translated well to the original Afrikaans name of Ruigtevlei as well as the observation that it was very descriptive of the environment gave sway in favour of the name.
After proclamation, the town experienced organic growth by attracting families who were attracted by the ‘new winter resort’ advertised in the George and Knysna Herald from 1927 onwards. In 1921 a railway connection between George and Knysna was planned and the project was completed in 1928 by routing the line over a new bridge crossing the adjacent Swartvlei (‘Black lake’). In 1940, the town was given a postal service outlet and in 1947 the road through Sedgefield was completed, thus fully integrating the town into the commercial route between George and Knysna.
Until the end of the 20th century, Sedgefield was an independent local authority. When the African National Congress came to power nationally, they decided to reduce the total of such local authorities country-wide and Sedgefield became part of Knysna.