The District of Ratlam was created in June 1948 and was reorganised in January 1949. It covers the area of the former princely State of Ratlam, Jaora, Sailana, Piploda. Ringnod Tehsil of Dewas Senior, Alot Tehsil of Dewas Junior and parts of Mandsaur Tehsil of Gwalior State, a few villages of Dhar State and Chief Commissioners provinces of Pant Piploda.
Ratlam is one of the important Districts of Madhya Pradesh Which is situated in the North West part of the State “The MALWA” Region. The New Town of Ratlam was founded by Captain Borthwick in 1829 with regular and broadened streets and well built houses. Ratlam was once one of the first Commercial Towns in Central India being the centre of an extensive trade in opium, tobacco and salt. It was also famous in Malwa for its bargains called Sattas. Before the opening of the Railway Line to Kahndwa in 1872, there was no better mart than Ratlam.
The District is known after the Headquarters town, Ratlam which was also the headquarter of Princely State of Ratlam.