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Farrell is a city in Mercer County , Pennsylvania , United States . The population was 6,050 at the 2000 census. Once dubbed "The Magic City," Farrell sprung up practically overnight when a steel mill was constructed in 1901 on a plain bordering the Shenango River in what was then part of Hickory Township (now Hermitage ). The community was incorporated as the Borough of South Sharon in 1916; its population peaked at over 15,000 in 1920 and its status was elevated to a third-class city in 1932. At that time the residents of the new city elected to take the name of Farrell, after industrialist James A. Farrell. The mill, which eventually became known as the Roemer Works of Sharon Steel Corporation , would serve as the community's lifeblood until 1992, when it was liquidated after filing bankruptcy. Many of the assets were sold at auction to Britain-based Caparo Corp. and later to Swiss steelmaker Duferco, which operates the plant today. Despite years of population and industrial decline, Farrell has made progress in rebuilding itself thanks to new industrial investments on tax abated land and several new housing starts. In 2004, the U.S. Census Bureau estimated that Farrell's population had increased to 6,058 from 5,882 in 2002--the first positive population change seen in the city in decades.