Historically, Grafton's economic base consisted of subsistence farming, small-scale industry, and mining.

U.S. Route 4 is the main road through the town, leading southeast to Andover and Concord and northwest to Canaan and Lebanon.

[5] The highest point in Grafton is the summit of Melvin Mountain, at 2,177 feet (664 m) above sea level in the northeastern part of town.

[13] Grafton's appeal as a favorable destination was due to its absence of zoning laws and a then-low property tax rate.

[14] Project participants did not find themselves as welcome as they had hoped, but they voted in changes including a 30% reduction in the town's already small budget.

[15][14] The libertarian newcomers additionally increased the town's costs by filing lawsuits against it in attempts to set various legal precedents.

[14] The project has been associated with an increase in the number and aggressiveness of black bears in town, including entering homes, mauling people, and eating pets.

[14] A single, definitive cause for the abnormal behavior of the bears has not been proven, but it may be due to libertarian residents who refuse to buy and use bear-resistant containers, who do not dispose of waste materials (such as feces) safely, or who deliberately put out food to attract the bears to their own yards, without caring how this affected other people.

[14] After a rash of lawsuits from Free Towners, an influx of sex offenders, an increase of crime, problems with bold local bears, and the first murders in the town's history, the Libertarian project ended in 2016.