That section of Lycoming County now occupied by the borough of Montoursville has occupied a conspicuous position in history from the earliest times. Before the coming of the white man it was the home of the half breed Indian woman, Madame Montour, for whose son, Andrew Montour, it takes its name.

Following out their usual custom of reserving certain manor lands as a reward for services, the Penns granted to Andrew Montour, in consideration of his loyalty and aid to the white settlers of the West Branch Valley, a tract of land containing 800 acres known as Montour’s reserve. It covered most of the land on which the borough of Montoursville is now located.

The white man first came to the region around Montoursville as early as 1769-1770. How long it had been a place of note among the aborigines is not known, but probably for a very considerable period, as the Moravian missionaries at the time of their visit found evidences that an important Indian village had existed there for a very long time.

Andrew Montour did not long hold title to "Montour’s Reserve." Indeed, it is not possible that he could have realized the great value of the rich lands that had been granted to him for he soon sold them for the ridiculously inadequate price of 22 cents an acre, the purchasers being Mary Norris and Zachary Lloyd.

The first settler in what is now the town was John Else, who came there with his father from Bucks County in 1807. His father purchased 200 acres on Mill Creek about two miles above the mouth of Loyalsock Creek. The boy did not long remain there, however. He apprenticed himself to a carpenter and soon learned that trade. He built the first house in Montoursville for Thomas Wallis in 1815. Else settled in the village and built many of the houses still standing within the limits of the borough, as well as practically all of the oldest houses in Williamsport.

In 1818 there came to Montoursville a man who was destined to leave a lasting impression, not only on that section, but on the whole of Lycoming County. This was General John Burrows, who bought a large tract of land in 1812. Before coming here General Burrows had distinguished himself in many ways. As a boy of thirteen he had carried mail for his father between Philadelphia and New York. When the Revolutionary War broke out he joined the army and rendered very distinguished service in the struggle that followed. He was with General Washington when he crossed the Delaware amidst the floating ice. He then joined the army at Morristown and was employed as an express rider at $40 per month. He was at the battle of Monmouth, where his horse fell with him and he was given another by General Washington himself. He spent part of the winter with the army at Valley Forge and for fourteen months was a member of General Washington’s immediate household. He first settled in Muncy but came to Montoursville soon afterwards, where he had purchased 500 acres of valuable land.

The town of Montoursville was laid out by General Burrows and Thomas Lloyd in 1820. The little village was at first a straggling affair, extending along one street only, and grew very slowly. Indeed it did not boast the distinction of having a real name. It was usually called "Coffee Town," or "Tea Town," the eastern end being generally known by the former name and the western end by the latter. These names were given to it because of the fact that so often when the stage coaches passed through the drivers were continually importuned by the busy housewives of the village to bring them from Williamsport a pound of coffee or a pound of tea. These names stuck to the little village long after it had received a more euphonious and imposing name, and even to this day the appellations "Coffee Town" and "Tea Town" are often used by the older inhabitants.

February 14, 1850, Montoursville was incorporated as a borough by act of legislature and its limits were subsequently extended by another act so that now, in point of area, it is one of the largest in the state. From that time the town began to flourish rapidly. A large paper and grist mill were built and with the coming of the lumber industry and the floating of enormous quantities of logs down Loyalsock Creek, several large saw mills were erected and for many years Montoursville was a booming lumber town. All these are now a thing of the past, but the borough still has a number of factories.

It is located on the line of the Reading Railroad and the canal branch of the Pennsylvania and thus enjoys excellent shipping facilities. It is also on the Susquehanna Trail, its principal street, Broad, being part of it for its entire length.

Most of its industries are in the line of furniture. They are the Montour Furniture Company, makers of bedroom furniture; the A. H. Heilman Company, manufacturers of all kinds of furniture; the Crandall, Bennett, Porter Company, makers of tables; the Woolever Brothers, tables, and the Berry Brothers, tables. There is also the H. Warshow and Sons silk mill, weavers of broad silk, and the C. K. and N. H. Aronsohn Company engaged in the same business.

The borough has two banks, the First National and the Peoples, both of which are in excellent financial shape and enjoy a prosperous business which comes from all the surrounding territory.

Montoursville has a large, well-equipped modern school building, which is ample for all school purposes. The school conducts academic and common courses and the county farm agent holds weekly classes.

The community spirit runs high, as witnessed by the purchase of 15 acres of ground for a school playground and its possible use as a ground for more school buildings. It was bought at a cost of $8,000, which was raised by popular subscription.

Montoursville has well paved streets and a good lighting system. Taxes are reasonable and real estate values well maintained. The town has good transportation facilities between it and Williamsport, a bus line making half hourly trips between the two places. The Reading Railroad also connects the two. The majority of the citizens are home owners and there is practically no foreign population. The social atmosphere is delightful and there are few small towns in the state which present more desirable conditions. By the census of 1920 it had 1,949 people.