Highland Township was established by an act of Michigan's Territorial Legislature on March 17, 1835. It was so named because of its elevated position, containing some of the highest land in the then-settled part of the state. The northern part of the Township drains into the Shiawasee River watershed, leading to Saginaw Bay, while the southern portion drains into the Huron River via Pettibone Creek, and thence to Lake Erie.

Settlement of Highland began even before the Township's formal creation, with the first purchase of government land being made by Naham Curtis on September 6, 1832. Over the next eight years a steady stream of other settlers arrived, including members of the Adams, Armstrong, Beach, Dunham, Leonard, Lockwood, Stratton and Tenny families; many of whose descendants still reside in the area.