Telupid was first occupied as early as the 1940s and was the site of the historic 'Death March' during the Second World War in 1945. This district was created around 1965 which was about three years after the State of Sabah was declared independent which in turn joined the formation of Malaysia. At that time, Telupid was just a small village inhabited by the Hamlet tribe. The development of this district began when the Malaysian Government collaborated with the Australian Government through the highway construction project connecting Telupid with Ranau District known as the Malaysia-Australia Road Project (MARP) in 1968. Telupid town is the main location for the administration and management of the project.

The collaboration has brought significant development with a focus on the town area. The administrative office buildings, workshops and residences of officers and staff were built so neatly that it transformed the landscape of the town from a traditional village to a modern settlement at the time. Interestingly, the town once had an airport near the highway that could be used for small aircraft.

The completion of the construction of the Telupid-Ranau highway under the MARP project has ushered in a new era where the State Government at that time has taken over all buildings and properties under the MARP and placed under the use and supervision of the Public Works Department (PWD) which was created and given the responsibility to take over the tasks of conservation and repair of the highways that have been built.

In the 1970s, looking at the strategic location of this district on the East-West route of the State of Sabah, the Government under the leadership of the USNO Party at that time took the initiative to create Telupid into a Sub-District under the administration of the Beluran District Officer, as an initiative to develop the district. The Public Works Department was the first government department to operate in the district followed by the establishment of a Sub-District Office in 1977, which played a role in the administrative affairs and development of the district. Since then, Telupid has been declared as a Small Region with its official name Telupid District.