John Erb, the founder of Preston, was born in Lancaster County, Pennsylvania, a Mennonite of Swiss ancestry. He came to Upper Canada in 1805, acquired 7,500 acres of land from the German Land Company and settled on the site of Preston where the Grand and Speed Rivers meet. He built a sawmill and a gristmill and the community grew around them. The town was originally known as "Cambridge Mills" and was later renamed after Preston, England. Preston's location on the Great Road into the interior of the province made it a natural stop for travellers and with its eight hotels and taverns attracted more Europeans than any other village in the area.