Central City was founded by Anthony Weichtenheiser in 1847 near the center of Shade township. For many years the family of his son, John Weichtenheiser, and the family of Obediah B. Lohr were the only two families in this vicinity.
Garrish, Whitehead and Lease opened the first coal mine here in 1900.
The town was largely laid out on the John Weichtenheiser farm by the Cook & Neasley Realty Company in 1913. Central City postoffice was established in 1919 and Joseph E. Lohr was the first postmaster.
Central City borough was incorporated in June 1918, and was the last borough formed in Somerset County (1930). Joseph E. Lohr was the first burgess. In 1930 it had a population of 2,101.