Its current form as “Chemnitzer Polizeisportverein” was founded on 12 June 1990 by police officers, with their new home venue at Stadion an der Clausstraße inaugurated on 25 January 2002.

The Gauliga Sachsen was inaugurated in 1933, and PSV Chemntiz finished third in their debut season 1933–34, behind Dresdner SC and VfB Leipzig.

On 13 May 1934, PSV moved to a new stadium in Planitzstraße, later known as Stadion an der Gellertstraße, which opened with a 5–1 win in front of 25,000 spectators against SpVgg Fürth.

In the final round of the German championship in 1935, the team made it to the semi-finals, but lost 2–3 against FC Schalke 04 at the Düsseldorf Rheinstadion.

Another highlight in the club's history is the 5–2 win against Real Madrid CF in 1934, in which the player Erwin Helmchen scored three goals.

In the 1936 German football championship group stage, PSV defeated Schalke 3–2 in front of 40,000 spectators in Dortmund's Stadion Rote Erde.

At the urging of DT, the handball department had to adopt the name "Police Gymnastics Club" for association policy reasons.