Our Lady of Mercy was established in 1919 by the Bishop of Columbus, James Hartley. Founding pastor was Fr. Clement Crock, who at the time was serving as pastor of Ave Maria and St. John the Baptist in Churchtown. The parish was formed in an effort to provide a more convenient location for the parishioners of Ave Maria parish (often called the "Rainbow" or "Waterford" parish). Ave Maria had been established in 1866 by the Archdiocese of Cincinnati, and being about 5 miles from the Muskingum River in Lowell, was later deemed "too far from the river and railroad" to be viable. It was closed in October of 1919. The first Mass at Our Lady of Mercy was said on December 8, 1919, the Feast of the Immaculate Conception. The original wooden structure was replaced by a brick church in 1954. This was one of the first new church building projects overseen by Bishop John King Mussio of the recently established Diocese of Steubenville. A church hall was built in 1929 and later replaced by a new brick hall in 1987. From 1987-2019, the parish was clustered with St. Henry's in Harrietsville. Today it is clustered with St. John the Baptist in Churchtown. Fr. David Gaydosik, a native of St. Michael's in Carlisle serves as pastor of both parishes.