Centralia was incorporated as a borough in 1866. The anthracite coal industry was the principal employer in the community. Coal mining continued in Centralia until the 1960s, when most of the companies went out of business. Bootleg mining continued until 1982. Strip and open-pit mining is still active in the area, and there is an underground mine employing about 40 people three miles to the west.

The borough was served by two railroads, the Philadelphia and Reading and the Lehigh Valley, with the Lehigh Valley being the principal carrier. Rail service ended in 1966. The borough operated its own school district with elementary schools and a high school within its precincts. There were also two Catholic parochial schools in the borough. The borough once had seven churches, five hotels, twenty-seven saloons, two theatres, a bank, a post office, and 14 general and grocery stores. During most of the borough’s history, when coal mining activity was being conducted, the town had a population in excess of 2,000 residents. Another 500 to 600 residents lived in areas immediately adjacent to Centralia.

It is not known for certain how the fire that made Centralia essentially uninhabitable was ignited. One theory asserts that in May 1962, the Centralia Borough Council hired five members of the volunteer fire company to clean up the town landfill, located in an abandoned strip-mine pit next to the Odd Fellows Cemetery. This had been done prior to Memorial Day in previous years, when the landfill was in a different location. The firefighters, as they had in the past, set the dump on fire and let it burn for a time. Unlike in previous years, however, the fire was not extinguished correctly.
-Wikipedia