Peabody is located in the North Shore region of Massachusetts, and is known for its rich industrial history.

[3][4][5] The area was settled as part of Salem in 1626 by a small group of English colonists from Cape Ann led by Roger Conant.

The western, less densely populated area of town is often separately, yet unofficially, referred to as West Peabody.

Peabody started off as a farming community, but its rivers and streams attracted mills which operated by water power.

[9] The population was situated primarily on Walnut Street, where they filled boarding houses and coffee houses to such an extent that it became known as "Ottoman Street," and, more pejoratively and less accurately, "Peabody's Barbary Coast", as the United States was at war with the Ottoman Empire during World War I.

[9] On the morning of October 28, 1915, twenty-one young children were killed in the St. Johns School fire in the downtown area on Chestnut Street.

Their bodies were found after the fire subsided, huddled together and burnt beyond recognition, near the entrance just steps away from survival.

As a result, Peabody became the first city in the United States to establish a law that all entrances or exits in public buildings be push-open, rather than by handle or knob.

[10][11] The tanneries that lined Peabody's "Ottoman Street" remained a linchpin of the city's economy into the second half of the 20th century.

The loss of the tanneries was a huge blow to Peabody's economy, but the city has made up for the erosion of its industrial base, at least in part, through other forms of economic development.

Early in the 20th century, Peabody joined the automobile revolution, hosting the pioneer Brass Era company, Corwin Manufacturing.

The mall opened in September 1958 as an outdoor shopping center, and was built on farm land originally owned by Elias Hasket Derby, one of America's first millionaires.

The largest protected portion of the city is the Brooksby Farm, whose land includes the Nathaniel Felton Houses.

Peabody is also bordered by Middleton to the northwest, Danvers to the north, Salem to the east, Lynn to the south and Lynnfield to the southwest.