The history of the founding of Pavlovo dates back to the middle of the 16th century, when a fortress-prison was erected on the steep bank of the Oka River. The main purpose of its construction was to guard an important crossing on the ancient highway connecting Nizhny Novgorod, Murom, and Moscow in Russia. The first reliable mention of the settlement dates back to April 5, 1566, in a charter of Tsar Ivan the Terrible—this day is considered the official birth date of the city.
The geographical location largely determined the appearance of the future industrial center. Due to the complex terrain with deep ravines, the settlement developed in separate sections: the Streltsy garrison was located on Spasskaya Hill, while craftsmen settled along the Tarka River. Early residents came from the Suzdal, Vladimir, and Rostov lands, and under the protection of the fortress walls, they began to develop blacksmithing, copper work, and pottery.
The origin of the city's name is shrouded in legends. The most popular tradition says that the settlement was named after a certain ferryman named Pavel, who was the first to organize a regular crossing over the Oka. Another version links the toponym with the name of the first "posad" person in the fortress. Over time, from a small palace village belonging to the royal family, one of the country's most famous craft hubs grew.