In the 17th century the river was the site of a Paugusset settlement. The name of the river means "river that flows out" in the Paugusset language. The land east of the river was opened to white settlement in 1637 after the defeat of the Pequot by John Mason in the Pequot War. After treaties with the local tribes, members of the Connecticut Colony began to settle the area between the Saugatuck and the Norwalk rivers to the west between 1639 and 1661. In the 18th century farming villages sprang up along the river, which was the principal means of transportation. During the 19th century, the lower river became the site of warehouses and shipyards, as well as an important hub of maritime commerce. The town of Westport was incorporated out of the existing village of Saugatuck at the mouth of the Saugatuck River and several surrounding communities in 1835.