On May 1, 1800, John Schell purchased large tracts of land of more than , which were later divided into farms and given to each of his sons with an equivalent in money and land to his daughters. His own homestead was constructed on property located outside the town of Schellsburg. John Schell generously donated land for schools, churches and town lots and granted parcels to the town and its citizens. In 1808 he laid out the town lots, developed the community and provided impetus for construction of the nearby turnpike as its first president. After he settled in Bedford County, relatives and neighbors in Montgomery County followed and settled in the area and the immediate vicinity. Schellsburg was incorporated as the second borough of Bedford County in 1838. The town was designated as the Schellsburg Historic District in 2001 and included on the National Register of Historic Places in recognition of the town's rich architectural heritage of buildings constructed of log and stone in the 19th century.