Morgan was first proclaimed in 1878, following the official opening of the North-West bend railway line from Adelaide via Kapunda to provide a more efficient freight and passenger connection between the Murray paddle steamers and the city.

The town was named after Sir William Morgan, a former Chief Secretary and the 14th Premier of South Australia.

With its railway terminus and large historic wharf, Morgan became a central hub for transporting goods upstream along the Murray and Darling rivers.

At its peak, Morgan was the second busiest port in South Australia (behind only Port Adelaide), with six trains a day carrying freight from the Murray to the sea at Port Adelaide.

As road transport improved through the early part of the 20th century, river transport declined and the railway to Morgan finally closed in 1969.

Morgan today has one of the longest stretches of riverfront in the Riverland, and is a favoured spot for recreation and river sports.