One of the New Hampshire grants, the town was chartered on June 19, 1753, by Governor Benning Wentworth, who named it Fane after John Fane, the 7th Earl of Westmoreland. But hostilities during the French and Indian War prevented its settlement. Because a first town meeting was not held within the required five years, the charter was deemed null and void. So Wentworth issued an entirely new charter on November 3, 1761, as New Fane.
The town was settled in 1766 by families from Worcester County, Massachusetts. Newfane became the shire town of the county before 1812. A village was built atop Newfane Hill, including the county buildings. But because of winter travel difficulties, it was relocated to the flatland below in 1825, until 1882 called Fayetteville after the Marquis de Lafayette.
The town has a diversified terrain, with both high hills and deep valleys. Farmers found good soil for cultivation on the intervales, and for grazing livestock on the uplands. Various streams provided water power for mills, and by 1859 industries included manufacturers of both leather and linseed oil, two flour mills, two lumber mills, and a large carriage factory.
As a result, Newfane became prosperous during the 19th century, when it built the Federal, Greek Revival and Victorian architecture that today makes it a tourist destination.
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