The settlement dates to the sixteenth century. The German-language name of the town was Wöchma. It began to grow when a railway station, located on theTallinn -Viljandi railway line operated byElron (rail transit), opened in 1899. Võhma was named a borough in 1945 and a town in 1993. In the period from 1928 to 1996 it was largely known for its slaughterhouse. The closure of the slaughterhouse caused a spike in unemployment, but the town has somewhat rebounded since then.