Tucked into a corner of the horseshoe area formed by a bend in the Great Miami River, McPherson Town was founded on February 1, 1845.

On this date, an Irishman named Samuel McPherson filed a plat consisting of 34 swampy, wooded lots on both sides of Dayton and Covington Turnpike.

[citation needed] Residential property was purchased for speculative purposes, including commercial development, highrise condominiums and an interstate highway.

But in the early 1970s, a few key private investors recognized the unique historical significance of the neighborhood and began to renovate several old homes.

In August, 1977 Dayton declared McPherson Town its third historic neighborhood and structures were protected from future urban renewal efforts.