The imposing Peteetneet School sits on the hill at the east end of Utah Avenue in Payson. The history of the historic building actually began in 1897. A that time, there was a question in the community whether another school should be built to replace the four one room schools that were located in the four quarters of the community. Each of these schools were filled to capacity and needed to be replaced. The plan was to construct a building large enough to house the first through the eighth grades.
Payson City officials offered the city gravel bed on the east side of town to the Payson School District as a site for a new building. Many citizens felt to location was too far out from the center of the city and it would be a hardship on the students who lived on the west side of town. The double block was signed over to the school district on April 2, 1897. There was a clause in the deed that said if the property was no longer used for a school then the title of the property would revert to Payson City. When the Nebo School District abandoned the school in 1987, the property reverted to Payson City.
After the school district accepted the site, a public meeting was called to discuss bonding to pay for the construction of the new building. Plans for the building the Victorian style building was designed by a local Utah County architect, Richard C. Watkins. He also designed the Knight Peteetneet Museum today Block and the Maeser School in Provo, and the public school in Spring City. He also designed the home of C. F. (Jack Dixon) in Payson among other residences.
Afterthe school was completed, it was named after the Indian Chief Peteetneet who had been very friendly and helpful to the earlier settlers of the community. The building was built at a total cost of $22,000. The general contractor for the construction was Henry Erlandson. He was also in charge of the woodwork in the building. David P. McDowell contracted to complete the masonry and Bates and Wilde completed the bricklaying. The building was plastered by Cottrell and Pickering. John Powell completed painting of the new building. All of theses individuals were Payson residents.