The original village was a hamlet, but the building of extensive Art Deco style semi-detached social housing from the 1920s on transformed it.

It lies in the shadow of the Celtic Iron Age hill fort of Pen Dinas, and between the sea at Tan Y Bwlch beach, the River Ystwyth and the Rheidol.

[7] Other amenities have included a post office, two supermarkets, a garage, holiday park and hotel and two fish and chip shops.

In 2008, Penparcau played a part in the transition town movement in Wales when it hosted the "Alternative Energy and Transport Festival" in Neuadd Goffa, attended by the local MP and mayor.

[16][17] On a hill south of the present town, across the River Ystwyth, are the remains of a medieval ringfort believed to be the castle from which Princess Nest was abducted.

[18] A Bronze Age standing stone is also referenced as being in Penparcau in the Ceredigion County History (Volume 1)[19] and the Dyfed Archaeological records.

There were three shoemakers, two tailors and two shipwrights as well as the following: rope-maker, joiner, tanner, carpenter, gardener, sawyer, wheelwright, weaver and saddler.

There are records in the national archive showing an extensive smuggling ring run by the Powell and neighbouring Stedman families.

At St Fagans the house has been furnished in the style of 1843, the period of the Rebecca Riots when many tollgates were destroyed in Wales.

Turnpike Trusts were eventually abolished in 1864 with county councils taking over responsibility for building and maintaining the roads but the Penparcau toll house remained a residence until the 1960s.

Penparcau is also the name of the village which covers a portion of the electoral division consisting of the areas of Southgate and Caeffynnon.

There are two Sites of Special Scientific Interest and the Pen Dinas and Tan y Bwlch Local Nature Reserves within this area.

Legend has it that the Welsh Saint Samson of Dol (also Samsun; born c. late 5th century) was threshing corn in Penparcau on the hillside of Pen Dinas when the larger part of his flail broke and landed across the valley in the Abbey at Llanbadarn Fawr, in anger he threw the smaller part over the valley too and these were used to make the three celtic crosses which now stand in the church.