During the late 1800s there was a small timbering town called "Antes'' located partly within the present park boundary. The town was located on the old Erie Turnpike running between Philadelphia and Erie. The town was comprised of a hotel, the Antes House, a store, a blacksmith shop, horse stables, a shingle mill, a lumber mill, a school and a large ten pin bowling alley. The Antes House was the stopping place for stage coaches and drivers traveling on the turnpike.

The first dam was built by beavers. Later a dam was constructed on the beaver dam site by a timber company who built a sawmill at the dam. The Black Moshannon area was one of the greatest lumbering areas in the state, and at one time there were over 3 million feet of logs stored in the lake. Some of the white pine logs cut from this area ranged from three to six feet in diameter.

The name Moshannon is an American Indian name (Moss-hanne, meaning "Moose Stream''), given to the stream running through the park.

The park is located high on top of the Allegheny Front. The underlying sandstone, being close to the surface here, creates wetland environments.

The high altitude of the lake and wetlands provides cool summer days and excellent winter activity conditions. Also, plants and animals normally seen farther north can be found here because the cool, wet conditions create the right habitat.

Development of the park was completed mainly by the Works Progress Administration (WPA) and the Civilian Conservation Corps (CCC) in the 1930s.