On 22 May 1879, the German Baron Otto Friedrich von Lilienfeld founded a harbour town, naming it after his brother Paul Lilienfeld, governor of the Courland Governorate - Paulshafen.

Paulshafen (later named Pavlovskaja gavan, Pāvilosta at present) and laid the foundation of the first brick building at Pāvilosta - a pilot house built from red bricks and rocks. From 1992, on the initiative of historian Orida Grīnberga, the building has been hosting the Pāvilosta local history museum, in which more than 10000 articles are displayed. The museum is proud of its many unique articles, which deserve to be seen; bronze Latvian brooches and belts made in the 18th century, items used for fishing, a piano made by the Riga craftsman Ludwig Theodor Aull "L. Th. Aull", made in the 1960s, one of the most ancient known works of art made by the craftsman, a folk costume of the Saka region, which won 1st prize in the competition of folk costumes of the XXIII Latvian General Song and Dance Festival held in 2003. In 2012, the attics of the museum were transformed into an exhibition hall.