Incorporated on June 22, 1799, as Thompsonborough, this community's name was changed to Lisbon in 1802. Lisbon is separated from Topsham by the Little River, which drains into the Androscoggin River.
Governmentally, Lisbon includes the village of Lisbon Falls, which were mill towns through most of the 20th century. The mills have closed, and today the town's economy is based on light industry and the service sector.