Hanna City is a village in Peoria County, Illinois, United States. The population was 1,225 at the 2010 census. Hanna City is part of the Peoria Metropolitan Statistical Area. Hanna City was founded in 1882 and named after William Hanna, who was president of the Peoria-Farmington Railroad, which ran through Hanna City. While originally a farming community, coal was soon discovered under the town.