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The Municipality's history extends back to Lunenburg County's founding in 1759. During this time, peninsular Nova Scotia was divided into five counties. Three years later Lunenburg County was reduced in size when Queens County was established. Following the establishment of Queens County in 1762, Hants County in 1781, and Shelburne and Sydney Counties in 1784, the boundaries of all nine of the counties were defined by the Council of Nova Scotia.

Surveys of the lines and boundaries of the various provincial counties and districts were made during the years 1820-25. Lunenburg County was among those that were run and marked. After considering the report of the Surveyor General, the Lieutenant Governor and Council declared the boundaries of Lunenburg County on May 3, 1828. By Chapter 52 of the Statutes of 1863 the Township of Chester in the County of Lunenburg was made a separate District. The Statute provided authority for the appointment of a Custos Rotulorum and for the establishment of a general sessions of the peace for the District of Chester with the same powers as if it were a separate county.