The origin of the town of Salem dates back to January 1753, when Bishop August Gottlieb Spangenberg, on behalf of the Moravian church, selected a settlement site in the three forks of Muddy Creek. He called this area "die Wachau" (Latin form: Wachovia) named after the Austrian estate of Count Nicholas Ludwig von Zinzendorf, Wachovia Bank takes its name from this area where it was founded. The land, just short of 99,000 acres, was subsequently purchased from John Carteret, 2nd Earl Granville.
The town established on the chosen site was given the name of Salem (for "peace") chosen for it by the Moravian's late patron, Count Zinzendorf. On 6 January, 1766, the first tree was felled for the building of Salem. Salem was a typical Moravian settlement congregation with the public buildings of the congregation grouped around a central square, today Salem Square. These included the Church, a Brethren's House and a Sisters' House for the unmarried members of the Congregation, which owned all the property in town. For many years only members of the Moravian Church were permitted to live in the settlement. This practice had ended by the American Civil War. Many of the original buildings in the settlement have been restored or rebuilt and are now part of Old Salem.
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