The central region of Devon was occupied by the Saxons soon after 682 AD.
It was divided into vast estates,
and one of these divisions included all land within the boundaries of the rivers Teign and Bovey,
with Moreton as its major settlement.
The present parish of over 6,000 acres (24 km2) is the residue of that ancient royal estate.
It remained a royal estate immediately after the Norman Conquest of 1066, as is recorded in the Domesday Book of 1086, where it is listed as the 45th of the 72 Devonshire holdings of King William the Conqueror.
The manor was held by grand serjeanty from the king by Richard de Burgh, 2nd Earl of Ulster (1259–1326) during the reign of King Edward I (1272-1307), for the annual yielding of one sparrow hawk.
After that time it was the seat of Sir Philip de Courtenay (d.1314), second son of Sir Hugh de Courtenay (died 1292) feudal baron of Okehampton, by his wife Eleanor le Despenser (died 1328), sister of Hugh le Despenser, 1st Earl of Winchester, and younger brother of Hugh de Courtenay, 1st/9th Earl of Devon (1276–1340) of Tiverton Castle. He died without progeny when Moreton Hampstead was inherited by his elder brother the 1st Earl of Devon, who gave Moreton Hampstead to his third son Robert de Courtenay, who made it his seat.
Robert's grandson William de Courtenay (1377-1388) died without progeny, and eventually the manor became the property of Sir Philip Courtenay (1340–1406) of Powderham, 5th or 6th son of Hugh Courtenay, 2nd Earl of Devon (1303–1377). Thenceforth it descended with Powderham and in the time of Pole (d.1635) was a possession of Francis Courtenay (1576–1638), de jure 4th Earl of Devon.
Wool and (in later years) the manufacture of woollen cloth formed the basis of the town's economy for over 700 years. The economy was evidently healthy when the town established a water-powered fulling mill before the end of the 13th century.
In 1207 King John granted a weekly market and an annual five-day fair, indicating that Moretonhampstead had developed into an important local community.
The town grew steadily through the Middle Ages and remained prosperous until the end of the 17th century, when the wool industry began to decline.
The town continued to be a local trading centre and a rest stop for travellers on the difficult routes across Dartmoor and from Exeter and Newton Abbot.
A series of fires in the 20th century destroyed many of Moretonhampstead's ancient buildings, but sufficient still remains to demonstrate the Saxon and Medieval heritage, and the later industrial prosperity.
Much of the town is designated a conservation area, with many listed buildings of architectural and historic interest.
The whole parish is within Dartmoor National Park.
