The history of East Petersburg reveals a small town created by chance rather than by commerce or necessity. Established in the early 19th century, with roots dating back to the American Revolution, East Petersburg was founded by Daniel Wolf, who opened a dry goods store in 1810. The small settlement, centered around the dry goods store and later a hotel, was not near any river or highway that afforded access to transportation or commerce. In the beginning East Petersburg seemed a most unlikely place for a town to develop.

Wolf established his dry goods store near two mills, loated on the Little Conestoga Creek that runs south and east of town. Apparently, Wolf established the store in anticipation of business from farmers who traveled to the mills. These early grist mills encouraged early settlement in the town, producing flour, animal feed and meal. The mills also attracted the development of a transportation network for farmers whose main crop at the time was wheat.

The famous Flory Mill, once known as Jacob Kauffman's mill was operated by the Kauffman family until the late 19th century. While corn and tobacco are the principle crops in Lancaster County today, wheat was the staple for farmers in the early 1800s. In fact, Pennsylvania was a major producer of wheat in the early days of America. The Flory Mill operated until 1984 producing more than 35,000 pounds of flour per day of locally grown winter wheat. A fire in 1984 that resulted in $200,000 in damage to the mill, closed the mill operation. Today, Flory Mill has been converted into office space and is still owned by the Flory family, who have owned the mill since 1924. The Flory Mill is also a registered historic landmark with the Lancaster County Historic Preservation Trust.

Though, the town of East Petersburg was established in the early 19th century, its name stood in contention until 1892. Two years after establishing his dry goods store, Wolf filed for a town plan in 1812 that would name the town Petersburg, in honor of Peter Gotschall, an early property holder. However, trouble with the name soon surfaced in light of the fact that there were other towns in York, Adams, Luzerne, Perry, Jefferson, Butler and Huntington counties that also bore the name Petersburg. Confusion ensued and mail was often lost or redirected to the wrong town. The name was changed to Petersburgh (with an H) for awhile, but the extra letter didn't solve the confusion. For about 50 years the post office in East Petersburg bore the name East Hempfield to denote its township location and distinguish it from the rest. Finally in 1882, the post office's name was changed to East Petersburgh. It is believed that the 'East' was added because Petersburgh was the easternmost town with this name at the time. The trailing H in East Petersburgh was dropped in 1892 and the town has been known as East Petersburg ever since.

East Petersburg never really developed into a major commerce center due to its proximity to Manheim and Lancaster. However, East Petersburg did provide goods and services to those who lived in or near its small village. Daniel Wolf's house and general store operated as the Captain Lawrence Hotel from the mid-1800s until Prohibition in 1921. After Prohibition, it became a shop and residence to a local butcher.

Another store, popular among residents in the late 19th century was operated by John Stauffer, Levi Gochnauer, and Haydn Zug, at the corner of State and Main Streets. Today, a restaurant on this site bears the name of Haydn Zug and remains a popular bar and restaurant.

East Petersburg was nothing more than a quiet rural village until the Reading Railroad arrived in the late 1860s. Coal and lumber yards were built along the railroad on the western end of the village, providing a place of employment for local residents. After that, Tobacco related businesses including cigar factories and warehouses were built and employed almost 100 men. Andrew Hershey's 1892 cigar factory, built at 6155 Main St. still remains today and houses a commercial operation.

East Petersburg has supported a variety of businesses throughout its history including a confectionery, a blacksmith's shop and a wheelwright. A most unusual business established in East Petersburg was a silk cocoonery. Worms were reportedly fed mulberry leaves grown near East Petersburg.

Though East Petersburg enjoyed a growth spurt in the late 19th and early 20th centuries, it never experienced a real population explosion. There were only 200 residents in the town by 1870. Carpenter street, developed in 1878 was the first new street to be added since Wolf's original town plan in 1812. It was lined with just 10 homes by the late 1890s.

East Petersburg eventually became known as a town where area farmers could retire after passing down the family farm to the next generation. Over the years, East Petersburg has sustained a steady stream of businesses, but it has never been a bustling commercial center. Today its relaxed atmosphere serves its residents along with a handful of restaurants and mom n pop shops and businesses.

East Petersburg's architecture is composed mainly of log-constructed homes, that today are covered with aluminum or vinyl siding. There are also a number of intact brick Federal and Greek Revival buildings. Side streets boast Four Square and fine Victorian style homes built with generous porches and decked with elegant scrollwork, throwbacks to a time when fine craftsmanship remained a proud American tradition. In many ways, East Petersburg still remains a part of an era whose time has passed. The famous Root's Market has operated every Tuesday since 1925. The Commons, a park on North Main St. is the town's original water source. And the tiny town offers many churches whose original congregations date back to the early 1800s.