The city of Faisalabad is not more than a century old. Just hundred years back this region was the center of keeping livestock. This city was irrigated in 1892 when Jhang & Gogera branches were supplied water. The foundation of first ever-residential area was laid in 1895. Its main purpose was the construction of a market. During those days, the area across the river Chenab was called Sandal Bar. Before the establishment of Lyallpur City the ancient residential area was called Pakka Marri now known as Pakki Marri. It became headquarters of the Lower Chenab Colony and in 1898 was incorporated as a municipality.
The caravans used to stay at this place while traveling from Jhang to Lahore. The English travelers of those times wanted to convert this area into a city. In the beginning the small establishment was called Chenab Canal Colony which was later named Lyallpur after the name of Governor of Punjab Lt. General Sir James B Lyall.
Its most distinguished feature is the town center which was laid out patriotically by Sir James Lyall in the shape of the British flag, a rectangle containing a cross and two diagonals. At the center is a clock tower where eight roads meet. These eight segments form the town’s main bazaars. It is also called the city of eight bazars, which emerge from clock tower and laid out in the shape of the Union Jack (British Flag)
In 1910, the famous and oldest Chenab Club was constructed. There, British rulers used to spend their evenings to entertain themselves with drinks & music. In 1908, Punjab Agricultural College and Khalsa School were opened. Later Khalsa School was upgraded as Khalsa College, which is now called Municipal Degree College. The first railway started in 1910. The first residential area was Douglas Pura established in 1920. Industrialization was started in 1930. The project of Lyallpur Cotton Mills was completed in 1934. With the establishment of Pakistan as the population increased the city also expanded. When Pakistan came into being the area of this city was 3 sq. miles. Now it is more than 10 sq. miles. New residential areas were established like Peoples Colony, Ghulam Muhammadabad, Lahore colony, Afghanabad, Jail road etc.