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The town was founded in 1679 by the Governor of the Cape Colony, Simon van der Stel, who named it after himself – Stellenbosch means "(van der) Stel's Forest". It is situated on the banks of the Eerste River ("First River"), so named as it was the first new river he reached and followed when he went on an expedition over the Cape Flats to explore the territory towards what is now known as Stellenbosch. The town grew so quickly that it became an independent local authority in 1682 and the seat of a magistrate with jurisdiction over 25,000 square kilometers (9,700 sq mi) in 1685.

From the beginning, the population living in the town and its surroundings was highly mixed, consisting of European (Dutch, French, German) citizens, enslaved people, 15 individual free-blacks, and 16 indigenous Khoi and San people. A minority of these free-blacks were able to amass significant wealth, even owning farms and enslaved people and employing white servants. The indigenous Khoisan were never officially enslaved, but due to several factors, including colonial encroachment on their hunting and grazing lands, illness, and extermination by European hunting parties, they were gradually forced to submit to colonial rule despite widespread resistance. Many became labourers on farms, domestic workers, or wagon drivers. Life in early Stellenbosch society for the Khoi, San, and enslaved people was extremely cruel and characterised by violence, hard work, and strict discipline. Farming was the dominant industry of the town, and due to the massive size of the early land grants, European farmers depended on enslaved and Indigenous labour. The isolated nature of these farms, where most enslaved and Indigenous people lived and worked, meant that unified resistance action was difficult.

The Dutch were skilled in hydraulic engineering and they devised a system of furrows to direct water from the Eerste River in the vicinity of Thibault Street through the town along van Riebeeck Street to Mill Street where a mill was erected. Early visitors commented on the oak trees and gardens.

During 1690, some Huguenot refugees settled in Stellenbosch, grapes were planted in the fertile valleys around Stellenbosch and soon it became the centre of the South African wine industry.

In 1710, a fire destroyed most of the town, including the first church, all the Company property and twelve houses. Only two or three houses were left standing. When the church was rebuilt in 1723 it was located on what was then the outskirts of the town, to prevent a similar incident from destroying it again. This church has been enlarged a number of times since 1723 and is currently known as the "Moederkerk" (Mother Church).

Since the 1800s

The first school had been opened in 1683, but education in the town began in earnest in 1859 with the opening of a seminary for the Dutch Reformed Church. Rhenish Girls' High School, established in 1860, is the oldest school for girls in South Africa. A gymnasium, known as het Stellenbossche Gymnasium, was established in 1866. In 1874, some higher classes became Victoria College and then in 1918 University of Stellenbosch.

The first men's hostel to be established in Stellenbosch was Wilgenhof, in 1903. In 1905, the first women's hostel to be established in Stellenbosch was Harmonie . Harmonie and Wilgenhof were part of the Victoria College. In 1909, an old boy of the school, Paul Roos, captain of the first national rugby team to be called the Springboks, was invited to become the sixth rector of the school. He remained rector until 1940. On his retirement, the school's name was changed to Paul Roos Gymnasium.

With the manumission of enslaved people in 1838, the population of Stellenbosch's town centre increased as formerly enslaved people moved there, away from the isolated farmsteads. This small exodus formed the basis of the District's coloured community, and by 1850, they had established a neighbourhood and community which became known as ‘Die Vlakte’.

In the early days of the Second Boer War (1899–1902), Stellenbosch was one of the British military bases, and was used as a "remount" camp; and in consequence of officers who had not distinguished themselves at the front being sent back to it, the expression "to be Stellenbosched" came into use; so much so, that in similar cases officers were spoken of as "Stellenbosched" even if they were sent to some other place.

Apartheid and subsequent developments

The Group Areas Act of 1950 led to ‘Die Vlakte’ in central Stellenbosch being proclaimed a White Group Area in 1964. In the following decade, roughly 3,700 (mainly coloured people) either left or were later forced out of Central Stellenbosch, relocating or being settled to the urban periphery areas of Idas Valley and Cloetesville. Black people were forcibly removed to Kayamandi. Several homes, religious and educational buildings, and community centres were bulldozed. One remaining building which stands in what used to be a central street of 'Die Vlakte' is the Goejjatul Islam Mosque.

In post-Apartheid Stellenbosch and its surrounds, residential areas are still notably segregated: although the Group Areas Act was abolished in 1991, the economic and residential patterns it enforced have proven difficult to overcome. This continued residential segregation, soaring wealth inequality, the reputation of Stellenbosch as the ‘cradle of apartheid’, and several racial discrimination scandals related to the university all indicate how Stellenbosch continues to reckon with legacies of racism and discrimination in both its institutions and physical, social, and economic landscapes.

Population

At the time of the 2011 census, the population of the urban area of Stellenbosch was 77,476, living in 23,730 households, in an area of 20.9 square kilometres (8.1 sq mi). Roughly 63.8% of the residents spoke Afrikaans as their home language, 19.6% spoke isiXhosa, and 6.8% spoke English. 28.1% of the population identify as Black, 52.2% as Coloured, and 18.5% as White.

Stellenbosch is home to the headquarters of several large and small companies, including major South African bank Capitec Bank, fast food chain Hungry Lion, the regional HQ of French dairy products group Lactalis, major private hospital group Mediclinic International, fiber network operator Herotel, and investment holding company Remgro.

Sport

Stellenbosch is a warm-weather training venue for cyclists, track and field squads, and triathletes. The Stellenbosch Sports Academy opened its doors in 2012 and hosts several rugby teams on a permanent basis, such as the Springbok Sevens and Western Province. It is also the home base of professional football club Stellenbosch FC who compete in the DStv Premiership.

Viticulture and winemaking

The Stellenbosch, Paarl and Franschhoek valleys form the Cape Winelands, the larger of the two main wine growing regions in South Africa. The South African wine industry produces about 1,000,000,000 litres of wine annually. Stellenbosch is the primary location for viticulture and viticulture research. Professor Perold was the first Professor of Viticulture at Stellenbosch University. The Stellenbosch Wine Route established in 1971 by Frans Malan from Simonsig, Spatz Sperling from Delheim, Neil Joubert from Spier and David van Velden from Overgaauw, known as Stellenbosch American Express® Wine Routes since 2002, is a world-renowned and popular tourist destination. This route provides visitors the opportunity to experience a wide range of cultivars and includes farms such as Warwick and JC Le Roux.

The region has a Mediterranean climate with hot dry summers and cool wet winters. Stellenbosch lies at the foot of the Cape Fold mountain range, which provides soil favourable to viticulture. Grapes grown in this area are mainly used for wine production, as opposed to table grapes. The region possesses a wide range of soils in the area, from light, sandy soils to decomposed granite. Stellenbosch Cabernet Sauvignon is beginning to get a good reputation as a fine wine.^[38]

Stellenbosch University

Stellenbosch University is one of South Africa's leading universities. This institution has a history dating back to 1863 and has 10 faculties, including Engineering, Commerce, Science and Arts. The Department of Electrical and Electronic Engineering is the only university department in the southern hemisphere which has successfully built a communications satellite Sunsat which was launched in 2000 and orbited the Earth for three years.

The university currently has about 29,000 students. White students in 2014, namely 18,636, constitute 63.4% of all students enrolled. Most post-graduate courses are presented in English. The university council with the concurrence of the senate approved a new language policy on 22 June 2016 for implementation from 1 January 2017. The university has committed to introducing multilingualism by using the province's three official languages, namely Afrikaans, English and isiXhosa.