Perry was named after Madison Stark Perry, a prominent Confederate Army Colonel during the Civil War who was later elected the 14th Governor of Florida. For many years, the timber industry was very big in Taylor County, so big the Forest Capital Museum State Park is located just south of Perry.

Early in the 1900's, the Hampton Springs Resort and Hotel was built above Hampton Springs just west of Perry. The Hotel was promoted as a resort destination with healing mineral waters. Because Perry was a crossroads of several railroads, the lavish resort (with its own railroad depot) did well into the mid-1930's. From the mid 30's to the end of World War II, the site served as military barracks for pilots flying aircraft out of nearby Perry-Foley Airfield. The resort business resumed after the war and lasted until the building burned in 1954. In its heyday, visitors included Theodore Roosevelt and royalty from several Oriental countries. Today, the hotel ruins, pathways, swimming pool and goldfish pond are all that remain. The hardwood forest is slowly taking over, although the water still flows from the springs with that characteristic hydrogen sulfide smell. The water is also thick now with dark green algae...

Taylor County has taken on the job of renovating the place in hopes of making it into a new state park. There's a new bridge over the river, parking area, picnic tables and fencing in place.