Paw Paw is a village in Lee County in the U.S. state of Illinois. As of the 2010 census, the village was home to 870 people, up from 852 at the 2000 census. It was settled in the mid 19th century and by 1878 the village had a railroad connection. Paw Paw is home to a house which is listed on the U.S. National Register of Historic Places and was the recipient of a 2005 federal grant to construct a water tower.