Located 21 miles north of Choteau just east of US Highway 89 on Secondary Highway 221, this small farming community is in the heart of one of the best dryland grain-growing areas in Montana. Pendroy found its origins as a terminal for the Great Northern Railroad and a shipping point for grain farmers in the area. The town's name came from Levi Boots Pendroy who helped survey this area. The village of Pendroy was started in 1916, the year the Great Northern railway extended its branch line from Bynum, 11 miles south.
Pendroy is located in north eastern area of Montana, northwest of Great Falls on US Highway 89.