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Collinsville is in Sections 23 and 24 in Milford Township and was named after Charles Collins, an Englishman and wagonmaker, who bought the first lot from Matthew Richardson. The 1882 county history says Richardson, a Marylander who later became a Butler County commissioner, "in 1802 entered the land on which Collinsville now stands." The same source says Collins "immediately began to work at his trade, and in 1839 sold out to W. H. Crume." Collins later moved to Preble County, where "he carried on the wagonmaking business and was also an undertaker." A post office was established there March 26, 1836.

Collinsville was once a station on the Eaton & Hamilton Railroad (later the Pennsylvania and now the Norfolk Southern).

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