Prior to 1684, the Lenape Indians roamed the hills and fished the streams of the land on either side of the Perkiomen Creek. In 1684, the Indians lost this land when William Penn purchased it for reportedly "two watch coats, four pairs of stockings and four bottles of cider". In time, Pennsylvania Germans settled in the area.
Around 1840, the area now know as Pennsburg began to take on the appearance of a village. The hub consisted of a general store, a carpenter and blacksmith shop and several houses. Most of the land was owned by the Heilig Brothers. They owned and resided in the oldest house in Pennsburg located at Seminary and Fourth Streets. The Heilig Brothers took it upon themselves to refer to this village as "Heiligsville". Residents had their own ideas, and out of loyalty to the then Pennsylvania Senator, James Buchanan, wanted to name the area Buchanansville. As the village grew in size, a meeting was held in 1843 at the Hillegas family store to decide on a permanent name and lay out boundary lines. After a week long bitterly contested battle, it was finally decided to name the village "Pennsburg" after William Penn. In the 1870's, Pennsburg's 75 residents welcomed the arrival of the cigar and railroad industries. These 75 residents collectively petitioned the court in Montgomery County to incorporate into a borough. On November 19, 1887, the 370 acre parcel of land became the "Borough of Pennsburg". Today the area covers nearly one square mile and has over 3,800 residents. While Pennsburg remains rich in heritage, it continues to improve and develop.