The area around Pana was first organized as Stone Coal Precinct in 1845. The county's precincts became townships in 1856, and Stone Coal Precinct became Pana Township, Christian County, Illinois. In 1857 the village of Pana was incorporated.[3] The name "Pana" is believed to have been derived from the indigenous tribe, the Pawnee.[4] It developed at the intersection of east–west and north–south railroads, and had supplies of fuel and water for the steam engines of the railroad.