The historical roots of Pelahatchie can be traced almost to the very beginning of Mississippi statehood. Its very location, historically significant, was recognized by the Historical Commission of Mississippi when a marker was placed four miles east of Pelahatchie to designate the boundary between the Choctaw Cessions of 1820 (Doak's Stand) and 1830 (Dancing Rabbit Creek). The surge in population was due primarily to the location of a sawmill in the town in 1907 by the Lockwood Lumber Company. The poultry industry, while not able to transform Pelahatchie into a boomtown, served the town and surrounding communities as a stable source of income for many years.