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The borough is south of Bethlehem and north of Philadelphia, making Quakertown a border town of both the Delaware Valley and Lehigh Valley metropolitan areas. Quakertown is considered part of the Allentown–Bethlehem urbanized area and the Philadelphia–Camden–Vineland (PA–NJ–DE) MSA.
Quakertown was originally settled by a group known as the Religious Society of Friends or the Quakers. The settlement was not officially known as Quakertown until the its first post office opened in 1803.
On September 18, 1777, during the American Revolutionary War, a convoy of wagons carrying the Liberty Bell from Philadelphia to Allentown stopped in Quakertown. The Liberty Bell was stored overnight behind the home of Evan Foulke (1237 West Broad Street), and the entourage stayed at the Red Lion Inn. The John Fries' Rebellion was also started in the Red Lion Inn.
In 1854, Quakertown elected its first Burgess. The North Pennsylvania Railroad caused a great increase in population, and by 1880, the population of Quakertown had almost reached 1800.