A large tract of land in Garwood along the Central Railroad of New Jersey was acquired in the 1890s by John R. Maxwell, a former president of the railroad. He formed the Garwood Land and Development Company to attract industry and to provide housing for workers. The town was incorporated in 1903, and was named Garwood after the first president of the Land Company, Samuel Garwood. By 1906, according to the Atlas of Union County, eight industries were located in Garwood. All were located on or near the railroad.
The Land Company built homes
for factory workers and rented homes for $9.00 per month.

In addition, the Land Company provided many services for the local workforce. Although the buildings of Garwood’s industrial beginnings have been mostly demolished or significantly altered, the office of the former Aeolian Company, manufacturers of musical instruments, remains. It is notable for its castellated Gothic facade on North Avenue. Development in the 20th century consisted primarily of suburban houses with a retail and commercial business district located along South Avenue.

Several homes built by the Land Company still stand on Myrtle Avenue. Other houses built for workers are scattered throughout the community, although residential development was concentrated along Center Street on the south side of town and along North Avenue and Second, Third and Fourth Streets on the north side.