The former Town of Tuxedo began as a real estate venture when Frederick William Huebach identified the area for development and founded the Tuxedo Park Company Limited in 1905. The original Town Plan for Tuxedo was designed by landscape architect Rickson A. Outhet of Montreal in 1905. The Outhet plan was never implemented. In 1910, after acquiring additional land, Heubach commissioned the Olmsted brothers (sons of landscape architect Frederick Law Olmsted, who designed Central Park in New York City) to create a new plan for Tuxedo. On January 24, 1913, the Tuxedo Park Company Limited incorporated the Town of Tuxedo and Heubach became its first Mayor.

The Town of Tuxedo Council consisted of a mayor and four councilors. The Town managed its own police and fire departments and the Tuxedo Public Recreation Commission. It was part of the St. James-St. Vital-Fort Garry-Charlewood-Assiniboia-Tuxedo Health Unit. There were three public schools located within the Town, managed by the Assiniboine South School Division No. 3.

The Town of Tuxedo ceased to exist in 1972, when Chapter 105 of the Statutes of Manitoba came into force unifying twelve area municipalities and the Metropolitan Corporation of Greater Winnipeg into one city government.