Just west of Wallace Woods and the railroad tracks is a German, working-class neighborhood developed in the latter years of the 19th century. This community was known by its inhabitants as “Peaselburg.” (Peasel is a term for goose droppings. Many of the early residents raised geese and the neighborhood’s mascot remains a goose).
In 1880, the community incorporated as an independent municipality and changed its name to Central Covington. In 1894, the Wallace Woods heirs agreed to be annexed by far less wealthy Central Covington because its tax rates were substantially lower than those assessed by the City of Covington.
The next year, Covington attempted to annex Central Covington, but support for the effort did not materialize. However, a decade later, many Central Covington businesses and homes were flooded by the eruption of a major sewer line. Covington offered to help the smaller municipality but only if the residents agreed to annexation, which occurred in 1907. Thus, Central Covington (and indirectly Wallace Woods) became a part of Covington. Six years later, St. Augustine Catholic Church was constructed on 19th Street, serving as this neighborhood’s focal point and community gathering place.