Joshua Evans built his tavern on this spot in 1769 and named it for Corsican patriot General Pasquale Paoli. The inn became an important early gathering place and was briefly occupied by British soldiers on September 20, 1777 during the Battle of Paoli. The Paoli later served as an essential hostelry on the Philadelphia and Lancaster Turnpike and the Philadelphia and Columbia Railroad before fire destroyed the structure in May 1899.