Montpellier was established in 1714 by Jean Imbert and Jacques Theron, Huguenot refugees who reached Table Bay in 1688. Prior to fleeing to Tulbagh, both men resided in the south of France, close to the historic city of Montpellier. When the governor of the Cape, Maurits Pasques de Chavonnes, granted Jean Imbert the land in 1714, he aptly named the farm Montpellier. Jacques Theron was granted the neighbouring farm, Le Rhône.

After the death of Jean Imbert in 1723, Montpellier changed hands several times, but was eventually acquired by descendants of Jacques Theron in the 1880s. The farm stayed in the Theron family for the next 100 years.