Previously known as Hajarain, Hatta became a dependency of Dubai during the reign of Hasher Bin Maktoum after the Omani Sultan Turki bin Said transferred the territory, finding himself unable to defend it against the Na'im of Buraimi, who had settled neighboring Masfout (today a part of the emirate of Ajman). The village was still called Hajarain as recently as 1906. The old village of Hatta includes two prominent military towers from the 1880s, a fort from 1896, and the Juma mosque, which was built in 1780 and is the oldest building in Hatta. The traditional water supply was through the Falaj system, which also has been restored. Since it is located in the mountains, traditionally it was the summer habitation of Dubai-based families escaping the heat and humidity of the coast.

Since the early 1980s, Hatta has been a popular destination for adventuring western immigrants and local families alike 'wadi bashing' through the tracks between Hatta.