In 1844, Anson Green Phelps (1781–1853), a merchant and philanthropist, wanted to expand the old borough of Birmingham (the present downtown of the city of Derby) to the north along the west side of the Naugatuck River to enable industrial development. Unable to purchase the land from its owner, in 1844 Phelps acquired land along the east side of the river; today this is Ansonia's downtown section. A canal was dug for river power to drive the factories and businesses in the new industrial village, which Phelps named "Ansonia". He wanted to name the industrial village as "Phelpsville", but learned there was another village in the region by that name. As suggested by a friend, Phelps Latinized his first name to create the name "Ansonia".