The Town of Federalsburg is located on the Marshyhope Creek in the southern-most part of Caroline County, the heart of the Eastern Shore of Maryland, which has long been known for being a land of hospitable and gracious living.
The Nanticoke Indians were the first known inhabitants around Federalsburg. In 1682, James and William Wright came from England with one of William Penn's colonies and settled on the Marshyhope Creek, the headwaters of the Northwest Fork of the Nanticoke River. When the forming of Caroline County was completed in 1774, this land fell within its boundaries. By an act of the General Assembly in 1792, the southern boundary was extended to Northwest Fork Ford because of the newly erected bridge at that spot, which was the division line between Caroline and Dorchester counties.
