Located in Maine's Waldo County, Freedom was first settled in 1794 by Stephen Smith, who had been a soldier in the Revolutionary War. First named Smithstown Plantation, the settlement was later renamed Beaver Hill Plantation. The town of Freedom was incorporated on June 11, 1813, during the War of 1812. In its early days, the town was agricultural in nature, focusing on hay and potatoes. Later, Sandy Stream, which is supplied by Sandy Pond and Duck Pond, provided water to operate mills, including a flour mill, a saw mill, a shingle mill, a clothing and woolen mill, tannery, and shovel handle factory.
The main village is located on the northeastern shores of Sandy Pond, and accessed by Freedom Pond Road from Routes 137 and 220. Thorndike is to its north, Montville to the south, Knox to the east, and Albion and Smithton to the west.