 The town was originally settled as part of efforts to mine and refine iron in the area.Settlers built a crude foundry in 1852, but abandoned it soon after due to transport and logistics issues.The town of New Harmony was settled in 1862, by families driven from Fort Harmony when the fort had to be abandoned after most of its adobe walls were washed away during a month of heavy rains in January and February, during the Great Flood of 1862.