Pawnee was built in 1896 by Rodermund & Co. at Tomkins Cove, New York, as the steam lighter John Dwight. The U.S. Navy purchased her on 6 May 1898 from George T. Moon and commissioned her the same day as USS Pawnee.
Pawnee was assigned to the 3rd Naval District and operated as a harbor tug at the New York Navy Yard in Brooklyn, New York, throughout her career. On 9 April 1910 she had a minor collision with the steamer (
United States) off the New York Navy Yard, resulting in no damage to either vessel.[1]
Pawnee decommissioned on 24 March 1922. She was sold on 25 July 1922 to Seabury & DeZafra, Inc., of New York City.