The park site is on land originally subdivided for building lots by Jesse Ketchum (1782-1867) who owned the land from north of King up to Queen between Yonge and Bay. A Methodist and strong promotor of Christian ways, Temperance Street was named by Mr. Ketchum. Leases to the lots on his land included a unique caveat that allows him to prohibit "nauseous or offensive" uses. This early land use control was used to limit hotels that used alcohol and to promote Christian institutions which were established on Temperance Street.
In addition to his gift of land for Jesse Ketchum School and Jesse Ketchum Park in Yorkville, Mr. Ketchum donated the land for Knox Church, which once occupied a site to the north of this park. The Richmond Street Methodist Church occupied a site to the west of the park. The name and date stone that was above the front door of the Methodist church [Wesleyan A. D. 1844] has been placed in the park garden.
In the 19th century the area developed with the mix of uses and buildings typical of early Toronto - institutional uses mixed with rowhouses, commercial chambers and small manufacturing. The 20th century saw the decline of residential uses in the area. After the building of City Hall at Queen and Bay, Bay Street became the financial and office centre for the region. The commercial growth of the neighbourhood continued with the Simpsons Department store moving westward on the block from Yonge Street thereby replacing Knox Church.
Cloud Garden was secured for use as a park in 1989 through the approval process for the Bay-Adelaide office development.