The history of Caersalem can be divided into four periods, and each period is represented by a particular building.

The first period was when the members worshiped in a house, mainly at the home of Robert Griffith - Y Siop Fawr. This family led the Methodist cause and their young son Hugh was exceptionally taken up with the cause. However, Hugh died when he was 15 and on the margin of the entry of his death in the Parish Register in 1776 is written 'started the Methodist cause'. He left money towards building a proper meeting place for the worshipers.

According to the Treasurer's Book, 1767 is the date given for when the first church was opened. However, there seems to be a difference of opinion on this as the Presbytery Year Book gives the date as 1760 and denotes Caersalem as the second oldest church in the West Merioneth Presbytery.

The site of the first church has long since disappeared, though it is thought it was between where St David's Church and the railway now stand.

From all accounts it was a thriving church and the initial cost had been cleared by 1789.

For some reason the church became too small and they decided to build Caersalem number two. This was located where 1 and 2 Cumberland place is today. The deeds list November 1824 as the date of the new chapel, but it is believed that the building was completed before that date. Again it was debt-free by 1845.

Thus the second period had started which can be classified as the consolidation period. For years the membership was 95, but in 1864 it had increased to 116 as the revival of '59 changed the atmosphere. Many came seeking membership - it was reported in a local paper that 70 new members had 'joined Caersalem within the last month.'

In 1864 Caersalem invited the Rev David Davies to be their first minister. He inherited a strong and viable church and very soon the chapel became too small. The Cambrian Railway Company were anxious to gain possession of the land and offered £850 for the site. This was agreed by the Minister and elders.

Rosaline Jones states in her book that the British School was opened in Caersalem number two around 1846 and continued later at Caersalem number three until the new school was built.