The history of Magway is closely tied to its strategic location in central Myanmar. While the exact date of its founding is unknown, its importance grew in the 20th century as it transformed from a small town into a major administrative center. While there are few records regarding Magway's early history, it is known that during the British colonial period, it was a small settlement within the Minbu District.
A turning point in the city's history came in 1974. Following an administrative reform, Magway was designated as the capital of the namesake division, succeeding the town of Yenangyaung. This provided a massive boost to the growth and development of urban infrastructure. Several factors contributed to the city's rise: its advantageous geographical position on the banks of the Irrawaddy River, the country's main waterway, historically facilitated trade and transport. Furthermore, the Magway Region is the heart of Myanmar's oil industry, which defined the economic specialization of both the city and the wider area.
Initially, the economy of Magway and its surroundings was focused on agriculture. The region is famous for growing oilseeds, particularly sesame and groundnuts, earning it a reputation for vegetable oil production. Rice, millet, and tobacco are also widely cultivated here. From a cultural perspective, the city is home to the famous Mya Tha Lun Pagoda, considered one of the region's primary landmarks. Historically, the population has been predominantly Bamar and Buddhist.