The town takes its name from the Old English word stōw meaning “principal place”, and was granted a market charter in 1347 by Edward III. A bi-weekly market is still held there today on Thursday and Saturday.

The population of the town has increased from around 6,000 in 1981 to around 21,000 in 2021, with considerable further development planned for the town and surrounding villages as part of an area action plan. It is the largest town in the Mid Suffolk district and is represented in parliament by the MP for Bury St Edmunds, currently Jo Churchill.