The origins of what would become the village of Ayr, situated along the Nith River, trace back to a cluster of settlements: Mudge's Mills at its heart, flanked by Jedburgh to the east and Nithvale to the west. These settlements gradually merged into one cohesive entity as they expanded, with the name "Ayr" officially adopted in 1840 for the newly established post office.
The land in this region, which would eventually form the township of North Dumfries spanning 94,305 acres, was initially purchased by Philip Stedman in 1798 from Joseph Brant of the Six Nations. Subsequent ownership transfers saw Thomas Clarke and then William Dickson, a prosperous immigrant from Scotland, acquire the land by 1816.
Abel Mudge emerged as the area's pioneer settler in 1822, establishing himself as a squatter along Smith's Creek (now the Nith River). He erected crucial infrastructure including a dam, sawmill, and grist mill, capitalizing on the water power offered by the Nith River and Cedar Creek. The subsequent influx of settlers, predominantly Scottish farmers, artisans, and tradesmen, solidified the foundation of Mudge's Mills.
Jedburgh was founded by Scottish immigrant John Hall in 1832, marked by the construction of a flour mill and distillery. Nithvale's origins, dating back to the early 1830s, are less documented, but notable for the establishment of flour and sawmills during that period. Hall's entrepreneurial endeavors expanded further with the opening of additional milling facilities nearby in 1832.
The layout of Mudge's Mill was orchestrated by James Jackson, the initial settler, in collaboration with J. R. Andrews and Robert Wylie in 1839. The moniker "Ayr" was bestowed upon the settlement by Wylie, inspired by his hometown in Scotland. Serving as the community's second postmaster after Jackson, Wylie played a pivotal role in its development.
Ayr burgeoned into a bustling hub by 1846, boasting a population of 230 and a spectrum of enterprises including churches, mills, a tannery, stores, and artisan workshops. The John Watson Manufacturing Company, later known as Ayr Machinery Works, emerged as a prominent fixture by 1849, producing agricultural implements that garnered national acclaim. The town hall and a furniture factory were among the notable additions, reflecting Ayr's flourishing economy.
The village continued to evolve with the advent of railway connectivity in 1879, linking it to the broader transportation network and bolstering trade activities. In 1884, Ayr expanded its jurisdiction to absorb Jedburgh and Nithvale, culminating in its incorporation as a village with foundry owner John Watson serving as its inaugural Reeve.
Advancements such as coal oil street lighting in 1888 and concrete sidewalks in 1901 underscored Ayr's modernization efforts. A significant milestone was reached in 1909 with the construction of a substantial library funded by a Carnegie grant. However, by the early 20th century, Ayr experienced a decline, prompting some residents to relocate to nearby urban centers like Berlin and Preston. Nevertheless, the village experienced a resurgence starting in the 1950s, fueled by suburbanization and the construction of commuter homes.
The transformation continued into the 1970s when Ayr was incorporated into the Township of North Dumfries and the Regional Municipality of Waterloo, marking a new chapter in its administrative governance.