Sale grew from humble beginnings with bark huts of pitsawn timbers, and became Gippsland's first proclaimed city with buildings reflecting the towns rise to the leading city in the region.

Sale was discovered by Angus McMillan in 1840. The first resident of Sale, then known as Flooding Creek, was Archibald McIntosh. McIntosh set up a forge, store and butcher's shop, making Flooding Creek a settlement.

Flooding Creek was renamed Sale in 1850 after General Sir Robert Sale, who won fame in the first Afghan war and was killed in battle in 1845. Sale began to develop further around 1860 when it began to take on a more permanent appearance, benefiting greatly from the Gold Rush around Omeo.

Between 1883 and 1890 the Swing Bridge and Sale Canal were built, opening up the town to shipping. The 1870s saw the introduction of rail to the town providing easy travel between Sale and the State's Capital Melbourne.

Further major developments in Sale consist of the building of three airfields, including establishment of the RAAF air force base in 1941 and National Safety Council in 1980. 1960 saw ESSO-BHP begin exploration for oil and natural gas in Bass Strait (off-shore south of Sale) which proved extremely fruitful.