The plantation was part of a large tract granted by Massachusetts about 1790 to Jonathan Phillips of Boston.

It was first settled in 1791 by Perkins Allen from Martha's Vineyard, a sea captain who called it Curvo.

The town was noted both for its productive soil, with hay the chief crop, and its superior water power.

At falls along the Sandy River were erected sawmills, gristmills, a fulling mill and a carding machine.

Most significantly, however, Phillips became prosperous as the center for lumbering in the Rangeley Lake region.

At first, lumber was shipped during winter months on sledges dragged across the snow by oxen.

Although the railroad closed in 1935, a short section has been revived as a tourist attraction and museum.

The Sandy River and Rangeley Lakes Railroad followed the west shore of Toothaker pond in the northern part of Phillips.

[9] The pond shoreline was developed with residences and seasonal cabins after the sawmill closed in 1908.

It holds Brook Trout, rainbow smelt, golden shiner, Yellow Perch and redbelly dace.

The racial makeup of the town was 97.7% White, 0.2% African American, 0.3% Asian, and 1.8% from two or more races.