Built in the open Rotton Park by John Perrott in 1758, who lived in Belbroughton, the tower now stands high above the local residential and business housing.
There are many stories to explain why the tower was built: that John Perrott wanted to be able to survey his land and perhaps entertain guests; or to spot animals for hunting; or so that he could see his wife's grave, 15 miles (24 km) away.
In 1966 the Geography Department of the University of Birmingham took over the running of the observatory until operations were transferred to the main campus.
In the summer of 2005 the Perrott's Folly Company, in partnership with Birmingham Conservation Trust, completed work to stabilise the structure.
In April 2008 the tower was temporarily opened to the public, housing an art exhibition in co-operation with the Ikon Gallery.