The name "Punxsutawney" derives from a Delaware Indian term which translates to "town of the sandflies."
Punxsutawney's most famous resident is Punxsutawney Phil, a groundhog said to predict the weather annually on Groundhog Day . Phil, and the town were the basis for the 1993 hit comedy film Groundhog Day (although nearly all of the movie itself was shot in Woodstock, Illinois).
As of the census of 2000, there were 6,271 people, 2,748 households, and 1,602 families residing in the borough. The population density was 1,836.2 people per square mile (708.0/km²). There were 3,042 housing units at an average density of 890.7/sq mi (343.4/km²). The racial makeup of the borough was 98.79% White, 0.22% African American, 0.16% Native American, 0.27% Asian, 0.02% from other races, and 0.54% from two or more races. Hispanic or Latino of any race were 0.75% of the population.
There were 2,749 households out of which 25.3% had children under the age of 18 living with them, 41.0% were married couples living together, 13.5% had a female householder with no husband present, and 41.7% were non-families. 37.8% of all households were made up of individuals and 20.6% had someone living alone who was 65 years of age or older. The average household size was 2.19 and the average family size was 2.89.
In the borough the population was spread out with 21.3% under the age of 18, 9.9% from 18 to 24, 25.1% from 25 to 44, 21.6% from 45 to 64, and 22.2% who were 65 years of age or older. The median age was 41 years. For every 100 females there were 80.9 males. For every 100 females age 18 and over, there were 77.2 males.
The median income for a household in the borough was $26,250, and the median income for a family was $33,054. Men had a median income of $28,958 versus $19,076 for women. The per capita income for the borough was $14,802. About 13.3% of families and 16.9% of the population were below the poverty line, including 20.6% of those under age 18 and 12.8% of those age 65 or over.