In 1870 Brigham Young made a trip through Panguitch valley and decided it was time to resettle. He called George W. Sevy, to gather a company and resettle Panguitch. The following notice appeared in the Deseret News in early 1871: "All those who wish to go with me to resettle Panguitch Valley, will meet me at Red Creek on the 4th day of March, 1871." The company arrived in Panguitch Valley on March 18 or 19.

During the first winter in Panguitch, supplies ran out. Seven Panguitch men were sent to Parowan for grain. The Panguitch men drove teams as far as the base of the mountain, then proceeded on foot. The snow was deep, and the men from Panguitch sank and could not walk. One Panguitch man accidentally dropped his quilt on the ground and found that it supported him. All seven Panguitch men formed a line, laying their quilts on the snow and then walking across the quilts. This procedure was repeated all the way across the mountain, and the trek became known as the quilt walk. Parowan pioneers came to meet the Panguitch men, who were fed, sheltered, and given grain. The men of Panguitch and food were taken as close to Panguitch as possible. A happy welcome greeted the adventurers when they arrived in Panguitch.

Panguitch, county seat and largest community of Garfield County, is built on the south side of the Panguitch Valley, on the north slope of the nearby mountains, and between Panguitch Creek on the west and the Sevier River on the east. The Panguitch elevation most quoted by citizens is 6,666 feet. Panguitch was first called Fairview, but the name was changed to Panguitch, an Indian word meaning "Big Fish," for nearby Panguitch Lake. Panquitch's land is generally arid and rocky, with sandy, fertile soil. The climate in Panguitch is severe, with sub-freezing weather seven months of the year.