The history of the founding of Pavlovo dates back to the middle of the 16th century, when a fortress-prison was built on the steep bank of the Oka River. The main purpose of its construction was to protect an important crossing on the ancient tract connecting Nizhny Novgorod, Murom, and Moscow in Russia. The first reliable mention of the settlement dates back to April 5, 1566, in a decree by Tsar Ivan the Terrible—this very day is considered the official birth date of the city.
The geographical position largely determined the appearance of the future industrial center. Due to the complex relief with deep ravines, the settlement developed in separate areas: a garrison of streltsy was located on Spasskaya Hill, and craftsmen settled along the Tarka River. Early residents were from the Suzdal, Vladimir, and Rostov lands, who, under the protection of the fortress walls, began to develop blacksmithing, copper, and pottery.
The origin of the city's name is shrouded in legends. The most popular legend says that the name of the settlement was given by a certain ferryman named Pavel, who was the first to organize a regular crossing over the Oka. Another version connects the toponym with the name of the first posad man in the prison. Over time, from a small palace village belonging to the royal family, one of the country's most famous craft hubs grew.