The region surrounding Virden was known, prior to European settlement as a good hunting area due to the abundance of large buffalo herds which grazed the surrounding plains area on both sides of the Assiniboine River. Various early aboriginal archeological sites are found through out western Manitoba, with local sites centered along the Assiniboine River valley and in the Oak Lake aquifer region.
The first European settlement in the Virden area was established in 1790, with the construction of Fort Montagne a La Bosse by the Northwest Company. The last known record of the fort was approximately in 1815 but remnants of the Fort were still visible to J B Tyrrell in 1890.
In 1872 the Canadian Pacific Railway reached Virden. the first town site being established near Gopher Creek, immediately east of the present town site. A model farm colony was established in 1881, in the Gopher Creek area, by Sir George Stephens but it failed due to sandy soil conditions not being conducive for crop growing.
The Gopher Creek post office was established in 1882 and in 1883 the CPR established the present town site, initially naming it Manchester. The post office on the present town site was registered as "Virden" in October 1, 1883.
The origins of the name remain somewhat obscure even today, with the most prevalent interpretations being either some connection to the Scottish home estate of Lord Mount Stephen or relating to the 7th Duke of Manchester's wife, her German homeland and the beautiful cathedral city of Verden.
Oil exploration started in the region in 1948 with the first successful well being drilled in January of 1951. Since this time Virden has been known as "The Oil Capital of Manitoba"
Recent new discoveries in the region has doubled current reserves and further exploration is continuing to expand these reserves even more. In 2006, close to 500 new oil wells were drilled with total industry expenditures reaching nearly $ 400 million.