Peru State College was originally incorporated under the name Mount Vernon School (sometimes reported as Mount Vernon Seminary or Mount Vernon College) on December 2, 1865, under the management of the Methodist Episcopal Church, after the need for a local institution was discussed November 11, 1865. The school was named after the community in which it was located, on a bluff above the Missouri. The town of Mount Vernon was supplanted by a community located at the base of the hill, whose original settlers came from Peru, Illinois. The Nebraska Territorial Legislature chartered the school on February 12, 1866, under the name Peru Seminary and College.