Smethport was founded in 1807 by Dutch land investors who were surveying a large tract of land they purchased from the Commonwealth of Pennsylvania, and was named in honor of a Dutch banking family, the De Smeths, who financed the land investments. The town's first business was a water-powered sawmill built by John Applebee in 1822. Smethport became the McKean County seat in 1826 and was incorporated as a Borough in 1853. The sawmill's artificial pond is now the centerpiece of Hamlin Park. Smethport has ties to General Thomas L. Kane who organized the Bucktail Regiment during the Civil War; the borough is home to an active group of Bucktail re-enactors.