Schellsburg was so named after John Schell who settled and founded the community. John Schell's grandfather Michael Schell first arrived in Philadelphia from the Palatinate by way of Rotterdam in 1727, after which more family members arrived in 1732 and again in 1738. In 1732 when he returned with other members of his family, Michael Schell purchased a substantial tract of land where he settled with his family in the Perkiomen Valley northwest of Philadelphia, an area in Upper Hanover Township later known as East Greenville, in what was then Philadelphia County and became Montgomery County in 1760. The adjoining community of Hillegassville was named after its founder Johann Frederick Hillegass. His granddaughter Elizabeth Barbara Hillegass married John Schell, Jr., who was born in 1725 at the family homestead granted to his father John Schell, Sr., the youngest son of Michael Schell who died in 1770.