The institution was established on 1 July 1957 as the Waterloo College Associate Faculties, a semi-autonomous entity of Waterloo College. This entity formally separated from Waterloo College in 1959, and was incorporated as a university. It was established to fill the need to train engineers and technicians for Canada's growing postwar economy. It grew substantially over the next decade, adding a faculty of arts in 1960, and the College of Optometry of Ontario which moved from Toronto in 1967.