The new town was named in commemoration of the Battle of Monterrey, Mexico (September 21–24, 1846) in which General (and future President) Zachary Taylor gained a key victory for the United States in the Mexican-American War (1846–1848).
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The 1st Ohio Volunteers comprised part of the army under Gen. Zachary Taylor and took part in the battlefield victories of Monterrey and Buena Vista.