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Flora Mae Statler founded the city in 1938. She named it Surprise because she was "surprised" that it ever had any value. Surprise officials believed that the city was founded in 1938 by Homer C. Ludden, but 2010 property records revealed that Statler owned the land before she married Ludden.
The surprise was divided to build cheap houses for farmers. There were only a handful of houses and a small gas station on the 1-square-mile parcel. The town has seen tremendous growth since then. It was incorporated in 1960 as a city. The townsite is bound by Greenway Road to the south, El Mirage Road to the east, Bell Road to the north, Dysart Road west, and Bell Road. The former site of an auxiliary airfield at Luke Air Force Base is where City Hall is.
Tens of thousands moved to the city to live in Sun City Grand in the 1990s and 2000s. This community, which is an age-restricted resort-like community that was built by Del Webb, saw homes built by the property developer. Surprise is located approximately 5 miles northwest of Del Webb's Sun City original development, and close to Sun City West.
Sun City Grand has been a significant contributor to the city’s population, which more than septupled from 10,187 in 2004 to around 75,000 in 2004.