Ongwediva was recognised as a modern settlement by the South African government in the 1960s. It became a modern settlement in the land under the leadership of the late Headman Nandjembo Mengela.
Its purpose was to serve as a residential area for people, including their families who were employed by business and the government in Oshakati and Ondangwa. It was in Ongwediva that all northern main educational institutes were situated in this area.
When the Local Authorities Act of 1992 was passed, Ongwediva was officially proclaimed as a town with its one Town Council. At the end of 1992, the first Town Council was elected.