The area that is now The Woodlands was used by the Akokisa and Bidai peoples, who relied on the fresh water of Spring Creek. In 1984, construction in the Indian Springs neighborhood near the creek discovered Bidai artifacts.
The Woodlands was conceived after the oil industry investor George P. Mitchell attended a symposium by the Rouse Company subsidiary American City Corporation and developer of Columbia, Maryland, on how to develop new towns using the HUD Title VII program. It was dedicated by George P. Mitchell in 1974 and managed by The Woodlands Corporation as an extension of Mitchell Energy & Development. Mitchell, an oil businessman, planned to establish a conference center, hotels, office parks, retail malls, schools, large distribution centers, and golf courses. Houses would range from moderately priced to expensive and large. Bill Schadewald of the Houston Business Journal said that Mitchell wanted the development to "entice city slickers looking for far-flung suburban quality of life". Schadewald said that local sources stated that the HUD New Town program, a federally funded program, had a "low survival rate" and questioned whether The Woodlands would succeed.
The Woodlands Corporation was acquired on July 31, 1997, by a partnership between Morgan Stanley and Crescent Real Estate Equities. In December 2003, Rouse Company acquired Crescent's interest, and Rouse was bought by General Growth Properties on November 12, 2004. In 2011, The Woodlands was sold to the Howard Hughes Development Corporation.
The land was previously occupied by the Grogan-Cochran Lumber Mill, hence Grogan's Mill and Cochran's Crossing neighborhoods, called "villages". The original planning utilized many of the planning concepts and design consultants employed in other well-regarded new communities of that era such as Columbia, Maryland, Irvine Ranch, California, and Reston, Virginia. The original development plan included environmental design principles espoused by Ian McHarg, a distinguished landscape architect, teacher and author of the seminal work Design With Nature.