In earlier days, Yishun was home to various pepper and pineapple plantations. Named after industrialist and rubber magnate Lim Nee Soon, Yishun became one of the HDB towns to be developed in the 1980s as part of a project called the Yishun New Town Project.
The project was initially allocated 907 hectares of land for public housing and industrial development, but the land area was subsequently increased to over 919 hectares. After resettling the villages that once dotted the area, construction work for Yishun began in 1977.