Kempton was named after early administrator and businessman Anthony Fenn Kemp who established the property Mount Vernon immediately to the north of where the township later grew in the 1820s.

It was originally called Green Ponds.

Kemp settled in Van Diemen's Land in 1816 and by the 1830s, through a combination of grants and purchases, had 4100 acres in the Green Ponds area. It was here that he established and developed Tasmania's infant wool industry, bred horses and cattle, and introduced a hardy, North American, variety of corn.

The streetscape, with its inn, church and shops, is very much as it was in the 19th century, and Dysart House, now privately owned, at the southern end of town, is an exceedingly handsome mansion.

Built in 1841 with no concern for expense, the original inn offered fine accommodation for travellers and their steeds. The impressive stables once provided shelter for 22 horses.

The ballroom was the venue for many a glamorous occasion. A peephole in the door hints at more scandalous behaviour! Today the ballroom is the guest sitting room.

The Wilmot Arms Inn (1844) in the Main Road was built by convicts and operated as a licensed inn until 1897. It is said that the proprietor suddenly got religion and stopped making alcohol and fed all his spirits to the pigs. From 1897 it became a private residence. It fell into disrepair but was restored in 1978. Today it is part of Tasmania's Colonial Accommodation circuit.

The major historic buildings in the town include the National Estate listed St Mary's Church of England, a sandstone Gothic Revival building which was probably designed by James Blackburn. It was completed in 1844 and is notable for its square tower, its interesting cemetery, and its position as a central feature of Kempton's townscape.

The annual Kempton Festival, generally held in February, features live music, market stalls and lots more.