Maxatawny City was formerly called Rothrockville. This township was named for Dr. Jonas G. Rothrock, who bought four tracts of land and established a medical practice and justice of the peace office in 1829. Later, he bought more land and opened hotels in the township. In 1846, he sold his hotel to Jesse Grim.
Maxatawny Township is part of the Kutztown Area School District and is home to Kutztown University, which is located in the township. There is a strong Menonite and Pennsylvania German presence in the city. The township is home to the Renninger's Antique & Farmers' Market, Pennsylvania German Cultural Heritage Center, and Bowers Chili Pepper Festival.