Colonel John Graham established Grahamstown in 1812. His brief was to survey the frontier and establish a series of forts along the Fish River, the newly proclaimed Cape Colony border with Xhosa territories.

It was the first town to be established by the British in South Africa, its location being primarily chosen for the perceived abundance of water. It remained a military garrison and was the site of the famous 1819 attack by Nxele (Makana) in his attempt to halt the European incursion into Xhosa territory.

A bitter battle, described as the most significant in South African history, ensued in which the amaXhosa were finally forced to withdraw after the timely arrival of a group of Khoi-Khoi hunters under the leadership of Jan Boesak.

Today the battle area is known by the local people as Egazini, meaning the "Place of Blood". A monument to the Xhosa warriors who died defending their homeland has been erected and specialist guides are at hand to lead tours of the battlefield.

As a result of this battle it was decided to settle 4,000 Britons in the area to consolidate British occupation of the territory. Their influence on subsequent South African history was far reaching and way out of proportion to their limited numbers compared to the local inhabitants.

After the arrival of the white settlers, Grahamstown grew rapidly to become the second largest town in South Africa after Cape Town. As military activity moved further east and north, education took over as its main infrastructure.