New Limerick was settled in 1775, named thus because many of its early settlers had previously lived in Limerick in York County, at the southern end of the state. The town was incorporated on March 18, 1837 from New Limerick Plantation.
The main village, just west of Houlton, nearly surrounds Nickerson Lake in the southeastern part of this half-township. The Meduxnekeag Lake is the source of the river by the same name, which flows east through town to Houlton. United States Route 2, also known as the County Road, runs through New Limerick from Houlton, on its way to Smyrna Mills.