In 1635, a small band of settlers landed at the northern edge of the Parker River in present day Newbury. They had been persuaded to leave Boston to help establish the northern boundary of Massachusetts Bay Colony against rival claims.

The first settlers found the Parker and Merrimack Rivers full of fish, and lumber was plentiful. These two commodities were the foundation of the area’s economy. The activities of the settlement were primarily agricultural, but by 1660, small fishing sloops and coastal shallops were being built. Between 1681 and 1714, shipbuilding was constructed on a larger scale and over 100 vessels were built in Newbury.

The early 18th century saw the focus start to shift from the agriculturally based community of Newbury to a maritime and mercantile oriented town along the river. By 1707, the first wharves and residences were built along its southern edge. This area was referred to as “Waterside.” By 1725, “Waterside” boasted a substantial population and increased riverfront activity. Disputes between agrarian and maritime interests led to a petition for Newbury to be set off and incorporated as a separate town. In 1764 the town of Newburyport Newbury Port was created by order of the General Court.

Following the lead of Boston and Salem in the 18th century, Newbury exported fish and timber to the West Indies to be exchanged for molasses and sugar. Part of this cargo was re-exported to Europe. Part was brought back to New England and the molasses was made into rum. This highly profitable “Triangle Trade” formed the base of the New England economy. The Collector of Customs registered huge quantities of molasses imported and unloaded in Newburyport.