The Town of Manchester was the first settled by English colonist in 1672 as an agricultural community. The Town's river and brooks provided power for paper, lumber and textile industries, and the Town quickly developed into an important manufacturing center.

In 1838, the Cheney Family started what would become the world's largest silk mill, and by the 1920's developed what was considered a utopian industrial community. The intact mill buildings, owner houses and worker houses are now a National Historic Landmark District. The mill buildings have undergone restoration and conversion to housing in the recent past.

The silk industry declined, the local economy became more diverse. During the 1950's and 1960's Manchester experienced substantial population growth and physical development. Residents of Manchester found major employment centers outside the Town.