Umtali was founded in 1897 as a fort, located about 8 km from the border with Mozambique. In 1891, the town was moved to a site known as Old Mutare. In 1896 the construction of the railway between Beira and Bulawayo led to the town being moved a third time so that it was closer to the railway line.
In 1922, the Umtali Publicity Association started to advertise the area using the slogan Umtali – The Eastern Gateway of Rhodesia.