The area that is now Damariscotta, Maine was once inhabited by the Wawenock tribe of Abenaki Indians, who left behind oyster shell middens along the banks of the Damariscotta River thought to be more than 2,500 years old. One of the middens, the Whaleback Shell Midden, is now a state historic site.
The land became part of the Pemaquid Patent, granted by the Plymouth Council in 1631 to Robert Aldsworth and Gyles Elbridge, merchants from Bristol, England. A fort had been built at Pemaquid, in an area now known as Bristol. Some colonists moved upriver from Pemaquid around 1640 and settled what is now Damariscotta, but the settlements were attacked in 1676 during King Philip's War, its inhabitants massacred or driven off.
Several false starts at rebuilding were interrupted by further attacks during the French and Indian Wars, but eventually peace was restored and the town grew as a trade center.
Damariscotta was incorporated as a town on March 15, 1848, set off from portions of Nobleboro and Bristol. Its name is not known for certain, but is thought to be an alternate pronunciation of the Indian name for the area, Madamescontee, meaning an abundance of alewives, the small, salty fish that spawned in Damariscotta Lake. However, some argue that the town was named for the Englishman, Humphrey Damerell, in conjunction with a local Sagamore, John Cotta.
Damariscotta, a town in Lincoln County, incorporated on March 15, 1848 from portions of Nobleboro and Bristol. The Indian name for the area was Madamescontee meaning an abundance of alewives. Alewives, small, salty fish, spawn in Damariscotta Lake, which extends northwest of the town through Nobleboro, Newcastle, and Jefferson.
Early industries included two sawmills, a match factory, and a tannery, while some brickyards were established along the river, supplying much of its brick to Boston. In the 1800s, shipbuilding took over as the town's primary industry, as clipper ships were launched at the town's shipyards. During that time of wealth, several fine examples of Federal, Greek Revival, and Italianate syle architecture were erected, giving Damariscotta a charm that still attracts tourists each summer.
The Great Salt Bay, bordering the northwest corner of Damariscotta, is the state's first marine shellfish protected area, one of Maine's many nature preserves, and has been closed to shellfish harvesting for many years.
Today, Damariscotta is primarily a residential community with a seasonal tourist economy.