Upper Chichester Township is named after a market town and seaport in Sussex, England, from which many of its settlers came. Upper Chichester was once part of the "Chichester Liberty" area established in 1683 by William Penn. The area originally included Upper and Lower Chichester Townships and Marcus Hook and Trainer Boroughs. The first court record of Upper Chichester as a separate organized entity appears in 1750. The municipality became a first-class township in December of 1941. In 1900 Upper Chichester had only about eighty-five dwellings in the township and a population of 601 persons. Today, the population is just under 17,000 people.

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