Chapel Hill got its name from a chapel on a hill , that was around in the 1700s . In 1993 , the Town celebrated its Bicentennial , which resulted in the establishment of the Chapel Hill Museum . This cultural community resource `` exhibiting the character and characters of Chapel Hill , North Carolina '' includes among its permanent exhibits Alexander Julian , History of the Chapel Hill Fire Department , Chapel Hill 's 1914 Fire Truck , The James Taylor Story , Farmer\/James Pottery , and The Paul Green Legacy .