He visited in 1770 and said, "as fine a land as I have ever seen, a great deal of rich meadow; it is well watered and has a valuable mill seat."

Washington hoped to develop the remainder of Perryopolis, drawing up plans for the streets to be laid out in the shape of a wagon-wheel.

Washington's estate sold the land after his death; in 1814 Perryopolis, previously known as "New Boston", was officially laid out using Washington's plans and named for Oliver Hazard Perry for his victory on Lake Erie during the War of 1812.

Until the 1950s, coal industries would be the area's primary economic activity, served by the Washington Run branch of the P&LE Railroad that continued on to Star Junction.

Instead of housing laborers, Perryopolis was mainly inhabited by foremen and white collar workers who were associated with the mining industry.

The Karolcik Building, St. Nicholas Byzantine Catholic Church, Searight's Fulling Mill, and Youghiogheny Bank of Pennsylvania are listed on the National Register of Historic Places.

According to the U.S. Census Bureau, the borough has a total area of 1.53 square miles (3.97 km2), all land.