Freeport was derived from Depreciation Lands - land designated as payment to Revolutionary War Soldiers for their services. This land, two tracts named Union and Friendship, was conveyed to William and David Todd. In 1796 the Todds laid out the town consisting of Water Street along the river and Market Street. 135 lots were designated and was known as Todd's Town. By 1805, 8 log cabins were located on Water Street. Todd's Island was located in the Allegheny River. The water in the river divided as it went around the island. Water from Buffalo Creek also emptied into the river which formed an eddy in front of the town. This made an ideal location to tie up river craft. David Todd declared, "No dockage fee will ever be charged to tie up a boat, raft, or barge". Thus it became a free-port. Canal Boats, Rail Roads, Grist Mills, Saw Mills, Wool Mills, Distillery's, and Brick Yards contributed to the wealth of Freeport.

Freeport Borough was incorporated in 1833 and today is a beautifull little town and a good place to raise a family.