The town was established in 1851 as an administrative centre for a fertile farming area producing citrus fruit, Tobacco, groundnuts, Sunflower seeds, Maize, Wheat and Cattle. On 10 February 1859, the Nederland Gereformeerde Church was founded in Rustenburg. Just north-west of the town, the Transvaal President Paul Kruger bought a 5 square kilometre farm in 1863.
Among the first residents of Rustenburg, were early settlers of Indian Origin. One of the first families of Indian Origin was the Bhyat family, whose contribution to the City's history was marked by the renaming of a major streetname to "Fatima Bhyat Street". Fatima Bhyat and husband Abubakr Ahmed Bhyat, the first residents of Indian origin owned a hardware store that supplied equipment on credit to Paul Kruger for use during the Anglo-Boer War and for which they were later rewarded with in gold.
Rustenburg is one of the host cities of the 2010 Football World Cup with the 40000 seat Royal Bafokeng Stadium.