The city of Butterworth, the main urban center on the mainland of Penang state, was named after William John Butterworth, Governor of the Straits Settlements from 1843 to 1855. Its founding history is inextricably linked to the British colonial period. In 1800, the British East India Company acquired a strip of land on the mainland from the Sultanate of Kedah, which became known as Province Wellesley (now Seberang Perai). Butterworth was established in the mid-19th century as an administrative center and the mainland "counterpart" to George Town, located on Penang Island.
A key factor in the city's development was its strategic geographical position. Located directly opposite Penang Island, Butterworth became an essential transport hub. It served as a transit point for goods, particularly tin mined in the interior, which was then exported through the Port of George Town. The development of the railway in the late 19th century and the launch of the ferry service between Butterworth and the island permanently secured the city's status as a key logistics center.
Butterworth's early economy was entirely centered on transport and logistics, including port services, the railway, and ferry operations. This encouraged an influx of labor and the formation of a multi-ethnic community. Alongside the indigenous Malay population, immigrants from China and India settled here. Thus, from the very beginning, the city's cultural identity was shaped by a blend of various traditions and lifestyles, which remains a defining characteristic of Butterworth today.