The town's history dates back to 1909 when by Nicholas II's decree a military plant was established in the area.

The town served as a base for secret military production, hosting four such factories until the dissolution of the Soviet Union in 1991.

[citation needed] According to Russian media, at least 34 people were injured in the explosions that originated in the town's ammunition storage facilities.

Chapayevsk is known as the "town of death" due to the high amount of toxins present in the environment.

In 1994, a special committee of the United Nations, after much research announced the town of Chapayevsk as an ecological disaster zone.