The town was origanally named Powerhouse. Dora and William Drake ran the first post office in Powerhouse. Because there was another centre called “Powerhouse,” the postal inspector suggested that the name be changed. Dora and William decided on Drayton Valley because “the first part of the name (Dray) was near to that of [their] own, and the latter part (ton) similar to [their] own home town.

The Post office opened on June 15, 1913.