Buford was incorporated in 1872 along the Atlanta and Richmond Air-Line Railway and named for Algernon Sidney Buford, then president of the railroad. The town grew up at the intersection of rail and the leather trade. Bona Allen Sr. opened a leather and harness operation in 1873 that grew into the Bona Allen Tannery, and for most of the late 19th and early 20th centuries the tannery was the dominant employer, shipping saddles, harnesses, and horse-collar leather across the United States.
The closing of Buford Dam in 1956 formed Lake Sidney Lanier across the Chattahoochee River just north of the city, and the dam itself sits a short drive up Buford Dam Road from Historic Downtown. The Bona Allen Tannery closed in 1981, and the surviving brick buildings were preserved and converted into Tannery Row Artist Colony, which now anchors the downtown arts district along with the Bowen Center for the Arts and the Buford Community Center.
The opening of the Mall of Georgia in 1999 along I-985 reset the city's commercial center of gravity and pulled a wave of residential development south and east of the historic downtown. Buford City Schools, established in 1921 and operated independently from Gwinnett County Public Schools, expanded to support that growth and became one of the most-watched signals in north-metro Atlanta buyer behavior.