More than 800 soldiers lived at the garrison and the settlement became 'Camp Cambridge', named after Queen Victoria's cousin, the Duke of Cambridge, who was commander in chief of the British army.
When hostilities ended, Cambridge became a market town. At first, it was a highway district administered by a board of trustees set up in 1868. It became a town district in 1882 and four years later was given borough status. At the time, it rivalled Hamilton as the Waikato's main town.
Meanwhile, the settlement of Leamington was formed across the river, joined to Cambridge by the bridge built in 1871. Leamington was assigned its status as an independent town district in 1905.
More than 50 years later, the two communities decided to become one, and Leamington became part of the Borough of Cambridge in 1958.
Today, much of Cambridge reflects what happened in those early days. Many of the town's exotic trees were planted in the 19th century, and some of its landmark buildings - such as St Andrew's Anglican Church (1881) and the Cambridge Primary School (1879) - were built while it was a military settlement.