Nkwatia was founded by the successor of Obirimfa Ahue, named Kwasi Akuoko.
The name nkwaetia means (Forrest of short trees).
The founding father formed part of the Tena/Bretuo entourage which founded Kodiabe her only history was one of the harassment at the hands of the Akin kotoku whose king nursed a territorial ambition on the land.
Tradition has it that in one such attack, Nkwatiahene was so hard-pressed that he was at a point of setting his stool on fire instead of surrendering it, had timely assistance not been received from the regent of Bepong. In appreciation of this assistance, Nkwatiahene undertook to pay the adultery fee(then fixed at three shillings) if any Bepong citizen was involved in it at Nkwatia.
The people of Nkwatia became renowned hunters and farmers, a situation dictated by a generous gift of land by Bokuruwahene, stretching from Bompan to Dem in the Afram plains.
According to the 1970 population census, only five settlement in kwawu qualify with a population of five thousand and above to be termed town by central Bureau of statistics definition.
As at that time Nkwatia was having a population of 6,285. By the 1984 census, the population of Nkwatia had increase to 7,569.