The township is named for Muncy Creek, a tributary of the West Branch Susquehanna River that flows through it.

[4] The township also played an important role in the development and regular use of the Pennsylvania Canal along the West Branch.

The hamlet of Port Penn rose up along the section of the canal that passed through Muncy Creek Township.

This dam provided the water that was needed to fill the canal along a stretch that began at Port Penn and ended at Sunbury.

Other businesses in Port Penn included hotels and taverns that provided housing and food for the men working on the canal, and a blacksmith and a saddle maker.

[5] Port Penn quickly gained a reputation as being a dangerous place that attracted "unsavory" characters.

The farmers and industrialists of Lycoming County used these warehouses to store their goods before they were sent south on the canal.

The chief exports of the county were hogs, wheat, flour, lumber, dried and salted meats, leather, and whiskey.

The bottleneck in the river created by the dam and canal locks caused the fish to be forced into one easy to reach location.

Baskets were placed along the dam and locks, and tremendous amounts of fish and eels were easily caught.

[4] The dams and locks at Port Penn were destroyed by numerous floods in the West Branch Susquehanna River Valley during the late 1800s.

Lycoming College and the Muncy Historical Society have spearheaded an effort to uncover the history of Port Penn.

Pennsylvania Route 442 begins at PA-405 near Muncy borough and leads southeast 16 miles (26 km) to Millville.