In 1675 The Great Delaware Tribe or Nation fell under the yoke of the Iroquois. The Great Delaware Nation was sub-divided into three clans, the Turtle Clan, the Wolf Clan and the Turkey Clan. The Wolf Clan was the fiercest and most war-like. They came from the Minisink Country and bore the name Minsis. The Iroquois assigned the Muncy Valley as the place where they should live and this is how Muncy got its’ name.
In 1768 a treaty was signed at Fort Stanwix that extended the Penn’s purchase to the Lycoming Creek. By 1770 a scattering of cabins and cleared sites were here. In 1776, encouraged by the British, the Indians terrorized the entire valley. Hundreds of white settlers were scalped and murdered. John Brady, a Revolutionary War hero, and his son James, were among those who were killed.
The entire valley was evacuated and the settlers fled to Fort Augusta for safety. This evacuation became known as the Great Run Away. Two years later it was reported by an exploring expedition that smoke was still rising from a dozen spots.
When peace finally came the settlers came pouring back. Among them were four McCarty brothers, Benjamin, Silas, Isaac and William. Soon after came the Waltons, the Bradys, the Robbs, the Stocktons and the Scudders. The first white child born in Muncy Valley was Mary Scudders.
In 1790 William McCarty built a large log home on North Main Street. He and his wife Mary raised 13 children there. The home is still standing and has been restored. It is the oldest house in Muncy.
In 1797 Benjamin and William McCarty laid out their land into building lots. Isaac Walton also sub-divided his land. Benjamin McCarty led the effort to change the name of the village to Pennsborough in honor of William Penn and so Muncy became Pennsborough in 1800. The town was incorporated in 1826 and soon after, in 1827, the name was changed back to Muncy.
In the 1830’s the West Branch Canal opened Muncy to the world as a trading center. Stores and industries flourished as goods were shipped in and out. The canal served the community until the coming of the railroads in the 1850’s. But it was 1900 before the very last canal boat arrived carrying coal.