The history of Lima dates back to 1831, when the settlement was officially established and selected as the administrative centre of Allen County. The city's name was proposed in honour of the capital of Peru, as in those times quinine (a medicine for malaria), imported from South America, was vital for the inhabitants of the marshy Ohio terrain. Notably, the local pronunciation was established as "Lye-mah".
Key factors that influenced the city's formation:
- Geography and Resources: Initially, the city developed on territory known as the "Great Black Swamp". Drainage of the land allowed for the development of agriculture, but the main catalyst for growth was the discovery of oil in 1885.
- Oil Boom: The discovery of deposits turned Lima into one of the centres of the US oil industry in the late 19th century. For a brief time, the city became a key player in the country's energy market.
- Transport Accessibility: The development of the railway network allowed for the efficient export of resources and goods, attracting capital and new residents to the region.
The city's early economy quickly transformed from agrarian to industrial. Besides oil extraction, Lima became famous for mechanical engineering. It was home to the renowned Lima Locomotive Works factory, which produced steam locomotives known all over the world. This industrial success shaped the cultural image of the city as a prosperous working-class centre with rich traditions of production and innovation.