Kaapsehoop originally gained fame as a gold mining town once known as the Duiwels Kantoor – the Devil's Office – towards the end of the 19th century, when gold was discovered in 1882 in a small creek running through the town. This led to portion of the original township layout being canceled and opened up for gold diggings. However, the earlier better paying discoveries of gold at both Pilgrim's Rest in 1873 and Barberton in 1881, followed by the discovery of gold on the Witwatersrand in 1886 (later to become the town of Johannesburg), coupled with the meager returns obtained at Kaapsche Hoop led to the town going into decline.
The town has been "re-discovered" in recent time and has now become a popular weekend retreat with its period housing including accommodation establishments. New housing (some not period) has also been established on some of the remaining vacant stands (erven). The town is also within commuting distance of the centre of Nelspruit situated some 30 odd kilometres away.
The rock field formations near the town are made up of quartzites of the Black Reef Formation of the Transvaal Supergroup.