Hankey was established in 1826 and is the Gamtoos Valley's oldest town. It was named after the Rev. William Alers Hankey, an ex-banker and the secretary of the London Missionary Society (LMS). He was born in Aberdeen, Scotland.
The purpose of the establishment of the village was to grow mielies and corn for the LMS main station at Bethelsdorp and also to carry out evangelistic work. The first property was "Wagondrift" owned by the Damant Bros. And although the town was planned for 250 families it started with 25 families. The first inhabitants consisted of a large number of Khoi, a few Mfengos, a few farmers and mixed "Gamtouer" (1700) descendants.

The LMS founded the station in 1822, terminated it in 1875 and in 1876 it became independent from the LMS. It became a Congregational Church as it is today. The first trustees of the LMS were Dr John Philip and the Rev. William Alers Hankey. The first missionaries were Messrs Miles, Melville, Williams, later the Philips' (Will Enowy and Thom Durant Philip)

Dr John Philip was superintendent. Some of the residents were Windvogel, Diederich, Abraham, Stuurman, Dragoonder, Armoed, Scheepers, Mahtjies, Gerts, Matroos, Konstabel and Kettledas. The first white farmers were Messrs. Wait, Salmon Ferreira, Stefanus Ferreira and the Damant Bros.