Oil was found at wells close to Pithole in January 1865. A large number of people moved to the area. Many of these people were land speculators. The town was built in May. By December, the area became an official town with about 20,000 people living in it. Pithole had at least 54 hotels, 3 churches, the third biggest post office in Pennsylvania, a newspaper, a theater, a railroad, the world's first pipeline, and a red-light district "the likes of Dodge City's". By 1866, less oil was being made in Pithole. Oil was found in other towns near Pithole. This made many people from Pithole leave to live in those places. By 1877, the town no longer existed.