The name Creswick derives from the Creswick family. Three brothers, John Charles and Henry, sons of Richard Creswick, of Sheffield arrived in Melbourne in 1840, and in 1842, as partners took up the land where Creswick stands today, as a pastoral run.

There is a story which no one is able to vouch for which follows the concept that one of the Creswick brothers and their Overseer were discussing a name for the creek which ran through their run that it was decided by the toss of a coin. The two names, "Creswicks Creek" or "Caroline Creek" (after the Overseer's daughter).

Two Creeks unite just on the border of the town, Slaty Creek and Adekate or Back Creek. As such the town first became known as Creswick's Creek when it came into being when the gold rush began about the end of 1851.

The mining district to the north of the town was one of the richest alluvial gold fiends in the World. The Madam Berry mine was reputed to be the richest alluvial mine in the world at that time.

Around 1854-55 the Creswick's Creek had a population in the order of 30,000 people.