Peru, one of the incorporated towns of Chautauqua county, is a station on the Atchison, Topeka & Santa Fe and the Missouri Pacific railroads, and is located on the Middle Caney river in Belleville township, 7 miles southeast of Sedan, the county seat. It has a bank, a weekly newspaper (the Derrick), and all lines of business activity. There are natural gas wells in the vicinity. The town is supplied with express and telegraph offices and has an international money order postoffice with one rural route. The population according to the census of 1910 was 575.

Peru was founded in 1870 on land entered by the town company, of which E. R. Cutler, L. Blanchard, D. B. Teeny, C. A. Zinglefield, Patrick Looby and John Lee were members. F. F. Spurlock built the first structure, which was of logs, and opened a general store. Among the early business men were: David Clark, general merchandise; H. Brown, saloon and hotel; a Mr. Crow, hotel; J. S. Cunningham and C. H. Ingelfield, hardware; H. C. Draper, grocery; L. R. Close, grocery; N. N. Smith and J. Sheldon, general stores; James Alford and L. Stauffer, saloons. The postoffice was established in 1870 with David Clark as postmaster. As there was no government mail route the citizens had to pay for having the mail brought from Independence.

The early days of Peru were rather turbulent. Of the first nine people buried in the cemetery seven died "with their boots on." The first religious services were held in 1871 by Father Records, in the upper story of a saloon. The first school was one maintained by subscription and was taught by Rev. Mr. Ward, a Baptist preacher, in 1870. In 1871 Peru became the county seat of Howard county (q. v.) and business was brisk for a time, but it later experienced a backset when the county seat was moved. A flour mill was set up in 1874, and in 1875 a newspaper was established by S. P. Moore & Son.