In the early 1900s, Redwater, Alberta, was first settled by Ukrainian settlers, followed by English and French settlers. The town's name, Redwater, is derived from the nearby Redwater River, an ochre-coloured tributary that drains into the North Saskatchewan River.
The survey of the Redwater area was registered on September 7, 1906. The original post office, established in 1907, was moved to the current town site in 1919 when Redwater was established as a hamlet. On December 31, 1949, it was incorporated as a village, and a year later, on December 31, 1950, it became a town.
Initially, Redwater was primarily a farming community. However, the discovery of oil in the area in 1948 transformed the hamlet of about 160 people into a bustling town of 1,306 by 1951.
Redwater, Alberta, is surrounded by wide, flat expanses of some of the best farming soil in Alberta. The Sturgeon River, a major geographical feature, travels roughly east-south-east about 15 kilometres (9.3 mi) south of the town and flows into the North Saskatchewan River.
To the east and south-east, there are vast areas of sandy soil known locally as sand hills, supporting a thriving silica sand and gravel industry. These differing zones support two major types of forest; coniferous, including Jack Pine, Scots Pine, White Spruce, Black Spruce, and some Balsam Fir; and broadleaf trees including Birch, Poplar and Aspen.
In the 2021 Census of Population conducted by Statistics Canada, Redwater, Alberta, had a population of 2,115 living in 910 of its 1,000 total private dwellings, a change of 3% from its 2016 population of 2,053. With a land area of 19.93 km2 (7.70 sq mi), it had a population density of 106.1/km2 (274.9/sq mi) in 2021.
In the 2016 Census of Population, Redwater recorded a population of 2,053 living in 862 of its 946 total private dwellings, a 7.2% change from its 2011 population of 1,915. The town's 2012 municipal census counted a population of 2,116, with 921 total dwellings within the town.
Despite its size, Redwater, Alberta, boasts many attractions. These include a nine-hole golf course with grass greens, a multi-use recreational facility called Pembina Place, an outdoor swimming pool, and the sand hills natural area, home to some of the best ATV trails in central Alberta. The town also houses a public library and the world's largest oil derrick, adding to its unique charm.