Phosphate was discovered in the vicinity of Newberry in 1889. In 1893, the tracks of the Savannah, Florida and Western Railroad were extended south from High Springs to service the mines in the area and the settlement that became Newberry began. The first post office was established in 1894 and by 1896, there were 14 phosphate mines operating in the area. Of course, that required boarding houses, saloons and hotels to serve the town's very transient and often rowdy population and Newberry grew to accommodate that. Then came World War I and with Germany being the primary buyer of Newberry's phosphate, the prosperity died overnight.

Today, Newberry is best known for the quality of the watermelons produced there. The Watermelon Festival began in 1946 and continues to happen every year.

The population of Newberry is up more than 49% since 2000.