There has been activity at Netherne on the Hill since the Bronze Age and Neolithic periods. Archaeological evidence from Roman and medieval times has also been found; the discovery of the footings of an early 16th Century farmhouse confirms post medieval occupation.

In 1898, Surrey Council selected Netherne as the site for a new psychiatric hospital to relieve an overcrowding problem at nearby hospitals. The Netherne farming estate was purchased for £10,000 and a 960 patient hospital opened on 1 April 1909. Four years later the foundation stone was laid by builder John Bowen.