The Town of Indian Head was once the territory of and home to the Algonquin Indians.
The Town's early residents came in 1890 to work at the newly established Naval Proving Ground which provided badly needed employment during the post-Civil War depression. Later the facility went through a series of name changes to reflect its changing mission. These included the Naval Powder Factory, Naval Propellant Plant, Naval Ordnance Station, and Indian Head Division of the Naval Surface Warfare Center. Today, it is part of the Western Section of the Naval District Washington and is home to a variety of tenants that include the Naval Explosive Ordnance Disposal Technology Division, Joint Interoperability Test Center, and the Marine Corps Chemical, Biological Incident Response Force. The Base is the largest employer in Charles County.