Greene Township, established in 1788, lies on the northeast side of the Borough of Chambersburg, the seat of Franklin County.  The Township is named after Nathaniel Greene, a prominent General who served during the Revolutionary War.  The Township developed along the roads that were in close proximity to the Conococheague Creek, which flows through the entire length of the Township.  The earliest recorded settlement was by the Culbertson family between 1744 and 1787.  The three main villages, Greenvillage, Scotland and Fayetteville were established between 1793 and 1844.  Black Gap Road (State Route 997), originally laid out in 1750, essentially ties these three villages together.  The original settlers in the Township were Scotch-Irish Presbyterians.

There were several gristmills established along the Conococheague Creek, but little evidence of these mills remains today.  The land was primarily in agricultural and forest and the planting of 200 apple trees by a resident in 1773 blossomed into a thriving fruit industry which still exists today.  The Caledonia Forge was built in 1830 and a furnace in 1837.  The ore supplying the forge came from nearby Pond Bank and Mont Alto.  The confederate forces burned the works in 1863, when they were encamped in the area near Walker Road prior to the Gettysburg campaign.  The Union Station at Scotland was bustling with Cumberland Valley Railroad activities for about a century starting in 1837.  The Confederate forces hoped to destroy the railroad bridge in Scotland in 1862 but their efforts were thwarted when they discovered the bridge was an iron structure.  The bridge and some of the railroad track still exists today.  Late in the 19^th century, Scotland was selected as the location for the Pennsylvania Soldier's School for Veterans Children, now Scotland School for Veterans Children.  The school is located along Scotland Road on the west bank of the Conococheague Creek.