Fairford has been a market town since 1135 when Henry I granted permission for a market on Tuesdays and Fridays. By 1260 a corn market had been well established. Charles II granted a revised charter in 1668 for a weekly market on Thursdays selling mainly cheese, milk, corn and livestock.

The market had become a monthly affair by the 19th century. In February 1873 a monthly corn and cattle market took place. This coincided with the opening of the railway at Fairford. In May of that year some 1,500 head of prime fat and store sheep were sold at market. Cattle, sheep and pigs continued to be sold until the First World War.

Originally, the plot of land on which Fairford Hospital now stands was donated to Fairford free of charge by the Lord of the Manor, Raymond Barker with the express request that it be used to build a hospital. Fairford people then went about raising money out of their own pocket and the foundation stone for the hospital was laid to commemorate Queen Victoria’s Jubilee in 1887. The cost of the building was in the region of £447. The architect was Mr Waller of Gloucester. In 1908, a new wing (a room with a bedroom above for the Matron) was added and this was paid for from a bequest from J R Arthur Gibbs (see below) of Ablington Manor. There is a plaque in the hospital saying that the wing was paid for by J R Arthur Gibbs and his parents.

Fairford Manor (really a parcel of land not a house) was Crown property from early times. During the Norman Conquest, Fairford was held by a Saxon noble, Britric. He refused to marry Matilda, Count Baldwin's daughter. When she later married William of Normandy she became the first Queen of England. She demanded all of Britric's land and possessions.

The estate remained royal property for the next 600 years, unlike most of the Coln Valley villages which passed to the church. In the 15th century the manor was held by the Earls of Warwick. They built a manor house which became the administrative centre where the old court was held. In 1478 the Warwick lands, including Fairford, came to King Edward IV.

The Carnival began in 1894 to raise funds for the Cottage Hospital. It made a profit of £30 with £25 being donated to the hospital and £5 set aside for the Carnival Fund. By the hospital's Golden Jubilee, Fairford Carnival was acknowledged as the "greatest show in the west". In 1937, the procession was so long that the head met the tail after going round the town. Some 32 bands took part in a celebrated contest.

It was a huge event that involved the whole community. The Carnival came to an end in 1956. The community spirit was revived in the mid 1990's when the Fairford Festival was started to raise money for charitable causes within the town.