The date of Welaka's initial settlement is unknown, however, neighboring Mount Royal archaeological site, a remnant of a Timucua Indian village is dated 1250 to 1500 AD. In 1860 Welaka's population was slightly over 100. At the end of the Civil War, fewer than 20 remained. The town grew again and was incorporated on June 21, 1887 and Welaka was affirmed as the town's name.
Today, it has a population of approximately 586, with 29% African American. Welaka's economy has changed over the years from citrus and cotton, medicinal cures from the springs, wine, crabs to nothing now, so most residents commute to neighboring cities for work, and those who have retired came home..