The midcoast area of Maine was inhabited by coastal and woodland Native Americans such as the Abenaki(or Wabanaki) until they were mostly dislocated by Europeans beginning in the 1600s.
The first European (English) people moved into the area in and around Liberty in the late 1700s. The first settlement was then known as Davistown Plantation, which is incorporated into neighboring Montville in the early 1800s. Mills in Liberty produced materials that were used in the shipbuilding industry that thrived in nearby coastal towns, such as Waldoboro, during the early 1800s.
In 1827 Liberty separated from Montville and was incorporated as a town.
The middle to late 19th century saw a decline in population and goods produced. This correlates with the decline of the shipbuilding industry.