The Mount Melville Estate, originally called Craigtoun, was one of the many Melville family estates, first established in 1698 for General George Melville of Strathkinness. In the late 18th Century, General Robert Melville undertook much of the landscaping in the park; an account from 1790 mentions the purchase and planting of 230 trees. The house and grounds continued in Melville ownership until the beginning of the 20th Century. In 1901 the new owner, Dr James Younger of the Younger brewing family, commissioned Paul W. Waterhouse to design a new mansion house and landscape the park. He designed much of the fabric of the park which can be seen today including formal gardens, a walled garden, Cypress avenue, rose garden, Italian garden and temple. In 1920 Waterhouse was commissioned to carry out further work on the gardens including the addition of the two connected lakes and the picturesque island village which became known as the Dutch Village. Like many country/mansion houses at the time, the lakes were likely added to comply with insurance company requirements for a ready supply of water in case of fire.
In 1947 the house and grounds were sold by the Melville family to the then Fife County Council. Its name was changed back to Craigtoun and the grounds established as Craigtoun Country Park. The Mansion became a maternity hospital until its closure in 1992. The country park facilities were added to over the following two decades and by the mid 1960s the park was at its peak as a tourist and day-tripper attraction with facilities including bowling green, stage for regular Sunday concerts and acts, spectacular glasshouses, miniature railway, putting green/crazy golf, rowing and motor boats and the famous ‘Puffin’ Billy’ tractor drawn train. The end of each season was also marked in September with the Craigtoun Illuminations – a spectacular fireworks display.