Although the first grant of land in the area was issued by Lord Fairfax of Cameron in 1740, it was not until 1764 that Purcellville’s first known settler, James Dillon of Bucks County, Pennsylvania, arrived. An early ox and wagon road that looped west from Leesburg to the Blue Ridge, later known as the “Big Road,” served as the town’s core, although farms existed in the area, and in 1752 the Ketokentin Baptist Church was founded nearby. the recorded business, a general store (a combined store and inn), was established by Abraham Vickers in 1799. It was followed by a second general store, founded by Stacy Taylor in 1804, and later by Purcell’s Store and Post Office, founded by Valentine Vernon Purcell (from whose name the town’s name is derived). A blacksmith shop, founded around 1848, was also one of Purcellville’s earliest businesses. On July 9, 1853, the village officially adopted the name Purcellville.
The Great Road became an authorized turnpike in 1785 and extended the turnpike system west from Alexandria to Snickers Gap and on to Berryville and Winchester. With the construction of this gatehouse in 1832, travel through Purcellville began to increase, and the first stagecoach arrived in 1841. Railroad service on the Alexandria, Loudoun and Hampshire line (a precursor to the Washington and Old Dominion Railroad) connecting the city to Leesburg and points east was built before the Civil War, and travel to points further west continued by stagecoach through Purcellville.
Although both Union and Confederate armies passed through Purcellville during the Civil War, the town witnessed limited fighting, the most notable of which occurred during the skirmish at Heaton’s Crossroads. The town and its environs were part of the area known as Mosby’s Confederacy, the main area of operation for Confederate guerrilla John S. Mosby, and the town was sacked during the Burning Raid of 1864 in retaliation for supporting Mosby’s command. .
When the railroad was extended to Purcellville in 1874, the town took the place of Leesburg as the beginning of a stage route until the railroad was extended to Round Hill in 1875. The Southern Railway built the still-existing Purcellville train station in 1891. The railroad ceased operations in 1968. Its right-of-way serves as the Washington & Old Dominion Railroad Regional Park, which has its western terminus.
The first public school was built in 1883. On March 14, 1908, the city was incorporated by an act of the Virginia General Assembly.
In the 20th century, a series of catastrophic fires, the first in 1900 and then two more in 1914, virtually destroyed the business district, depriving the city of what remained of its oldest architectural heritage. The city’s prominent location in the center of the Ludong Valley and the presence of the railroad helped the city become the main agricultural center of West Ludong and led to the reconstruction and expansion of the business district in the early and mid-20th century. In the late 20th century, the expansion of Virginia State Route 7 led to an increase in suburban development in and around the city, and Purcellville’s traditional reliance on agriculture as its primary source of income has since diminished as more and more residents work outside the community.