Evidence of settlement have been found dating as far back as the Iron Age. There are no real records until after the Roman Conquest when Shropshire was colonised. The settlement we know as Wem was founded by the Saxons and called Wamm. This name came from the marshes that are found around the River Roden which runs through the town. Over the centuries the name has been corrupted, finally settling on Wem.

In 1202 Wem was granted a Market Charter by King John. Until 1351 the market was held on a Sunday, when it moved to a Tuesday. The market is still held on a Tuesday in the town today.