Furnace Town has an historical impact because it was an important part of the industrial age. The Furnace was built on the site of a former grist and saw mill, and designed to manufacture iron by smelting bog ore. The ore was found in the nearby swampy soil along the Nassawango Creek. Mules then transported the ore to the furnace by pulling the bog ore carts up the hill to the top of the furnace stack. The carts were then unloaded, and the mules then backed down the hill. Every day, 3 tons of ore were loaded into the furnace in this manner and then heated with charcoal. To make the furnace work, there were large waterwheels that maintained the heat of the fire burning by powering huge bellows. After about 24 hours, the furnace was opened and the ore would spill out into molds, called pigs and sows. These pig iron molds would then be collected and taken to Baltimore or Philadelphia to be used in various industries.
In 1962, the Worcester County Historical Society began a long range program to stablize the furnace and rebuild the village. Period buildings were moved in to replace the rotted wooden structures. In 1983, artisans were trained to interpret crafts and life in the period 1820-1850, and a visitors center was built. Today, there are tours of the village, and an annual Celtic Festival is held. Furnace Town was not only built to gain tourists attractions but also to give local students a close encounter of what society was like in the 1800s. Furnace Town is largely involved with elementary school trips pertaining to history. Students are able to dress up as if they are back in time which gives students more of a real life aspect.