Settlers arrived in 1753, and lumbering became a principal industry. Logs were rolled down the banks of the Saco River and floated to sawmills at Saco. Nathaniel Goodwin established the first local mill in 1782 at Goodwins Mills, where falls in Swan Brook drop . A sawmill and gristmill were erected at Union Falls (then called Hopkinson's Mill) in 1806. Tanneries were built, and land was cleared for farms. In 1798, Little Falls Plantation was incorporated as Phillipsburg, in honor of Major William Phillips—but only until 1810. Considered difficult to pronounce and write, the Phillipsburg was changed to Hollis. Then, in 1854, the southern part of Hollis petitioned the state legislature to become a separate town. Permission was granted, and the community was named Dayton after Thomas Day, who submitted the petition.