The first house in Bridgewater was built in 1812 by Ralph Hotchkiss. The town was incorporated in 1899. This was shortly after a fire in Bridgewater which burned the entire downtown area. For much of the 20th century, the town's economy depended on forestry. There was a large wood mill in the center of town. The Nova Scotia Central Railway and later the Halifax and Southwestern Railway had a central hub at Bridgewater. The "Acadia Marine Engine Company" was based in Bridgewater. It made engines for fishing boats.