Before the settlement of the boundary dispute between Delaware and Maryland, this area was considered to lie in Maryland. On July 5, 1755, responding to the request of members of the Church of England residing in the upper portion of Worcester Parish, the Maryland Assembly enacted legislation authorizing the purchase of land and construction of a "Chapel of Ease" to serve their spiritual needs. A two acre tract at this location was then purchased from Walter Evans. On June 30, 1757, the newly-completed chapel was formally received from the builders by the vestry of Worcester Parish. It was named to honor the English prince who would become King George III. By 1850 the condition of the chapel had deteriorated, and services were discontinued. Efforts to restore the church to active use were unsuccessful. Annual services were held here for a time, but for many years the building was maintained solely as a historic site by the Episcopal Diocese of Delaware. In 1928 the Sussex County Laymen's League funded the complete restoration of the old church, and a rededication service was held here on June 30, 1929. At the urging of numerous persons concerned about the preservation of the structure, the State of Delaware received ownership of the property in 1967. Major renovations were subsequently undertaken with funding provided by the State and National Park Service. Prince George's Chapel was listed in the National Register of Historic Places on March 24, 1971. Of particular note is the grave of General John Dagworthy, an officer in the French & Indian and Revolutionary wars who was an early and ardent supporter of the church, and for whom this community is named.