In 1940, the Latham Act was passed by the United States Congress. This legislation provided funds for the construction of housing developments for workers engaged in war-related activities. A tract of land along the Rahway River, near Clark, Cranford, Rahway and Linden, was purchased to create housing for workers and their families of the Kearny Shipyards. This was to become the Township of Winfield.

Early residents of Winfield were screened by credit ratings and ‘attitude’. They attended meetings explaining community ideals and the concept of cooperative housing.

Groundbreaking and construction began on June 23, 1941. By the end of December, approximately 135 families had established residence in the new community. Unfortunately, the new home residents found themselves without basic services, including water, electricity or gas. Streets were unpaved and sidewalks consisted of two-by-fours laid end to end. The design of the homes also proved to be problematic, with flooding being a common concern. The federal project very quickly became the subject of a Senate investigation led by Senator Harry S. Truman. Photographs of the project in Life Magazine aroused public indignation. The contractor was indicted and subsequently found guilty.

Even before the housing problem was resolved, the residents of Winfield petitioned the New Jersey Legislature to designate Winfield as a separate township so that essential services could be provided. The measure was approved on August 1, 1941. Winfield Township was named for General Winfield Scott, a prominent mid-19th century resident of Elizabeth. The new township established a school, fire department, police department and other municipal amenities. Some of the improvements were financed by the federal government. Others resulted from the contributions of the residents.

In 1950, the residents of Winfield formed the Winfield Mutual Housing Corporation. The non-profit corporation assumed the mortgage for the entire development. Although residents do not own their individual homes, they own the corporation. Community decisions are made by majority vote, with each family having one vote.

The Township of Winfield remains a viable municipal corporation. The greenbelt of the Rahway River parkland provides a backdrop and the streets, with their nautically inspired names such as Wavecrest and Seafoam, wind through a well-kept community. Although the township is not listed on the National Register of Historic Places due to the wishes of its residents, Winfield is probably one of the best examples of a federal wartime housing project in the United States.