The name Perote, adopted in 1850, was suggested by veterans returning from the Mexican War (1846–48), who remembered a citadel in Mexico by that name.

Early settlers in the area, who came primarily from the Carolinas and Georgia, included the following families: Boykin, Reeves, Sellers, Crossley, Blue, Harp, Locke, Peach, Hixon, Culver, Johnson, Adair, Ardis, McCall, Rumph, Brabham, Miles, Cameron, Starke, Wilson, Walker and Ivey.

Methodist and Baptist churches were among the first structures in the community, around which much of the social life centered, including "protracted meetings" – revivals."

The community's fortunes fell following the war as cotton cultivation, the area's traditional leading economic pursuit, receded in importance.

By-passed by the railroad and experiencing several disastrous fires, Perote suffered a steady decline in business activity and population."