First known as the Northfields, "the Farms", and Brooksby, the area was settled about 1626 within Salem. In 1752, the area was set off from Salem and incorporated as part of Danvers. It was usually referred to as "the South Parish", associated with the church located in the center (now Peabody Square). In 1855, the community broke away from Danvers to become the town of South Danvers, incorporated that May 18. The name was changed on April 30, 1868, to Peabody after George Peabody.