For at least 2,000 years, Nipmuc towns along the Towanucksett and Quinneticut Rivers called the area covering what are now South Shutesbury, NE Amherst and parts of Pelham "Sanakkamak", meaning "difficult land", according to the Indian Land Archives of Springfield (1660–1835), now housed at Cornell University.

The northern parts of Shutesbury, as well as parts of Belchertown and Pelham along the former Swift River (now Quabbin Reservoir), were called "Kingyiwngwalak", meaning "Upturned land" due to the heavily titled bedrock of the area and many steep ravines draining to the east and south (Indian Land Archives of Springfield, Cornell Univ.

Indian Land Deed Archives record that the land was used for hunting, fishing and collecting wild staples, such as chestnuts, hopniss (Indian potato, Apios americana), blackberries, blueberries, service berries, sunflower root, and for cutting timber.

Sachems holding rights to the land in Shutesbury specifically inserted a clause in the deeds that "they, their descendants and assigns retain the right to hunt, fish and take wood from the lands they have thus deeded, and the English shall not prohibit them from taking wood and fish, and shall be friendly and neighborly toward them" (edited for modern spelling).

After the Revolution, the entire area and most of Massachusetts were clear-cut and sheep grazing predominated during the brief textiles boom, which was overshadowed by wool production in the West, Australia, and New Zealand (Massachusetts Historical Preservation Commission publication online[full citation needed]).

Croplands have shrunk steadily in the period since then, being the most at-risk land category in the Town Master Plan.

Most of the eastern third of the town is part of the Quabbin Reservation, with significantly large parcels also composing Shutesbury State Forest.

The Boston Globe ran a story in 2005 describing Shutesbury and its neighboring town, Leverett, as one of "America's Broadband Black Holes".

[3] In 2017 Massachusetts Governor Charlie Baker announced grant funding for high speed broadband in several towns, including Shutesbury.

A 2012 attempt to pass a ballot measure funding erection of a new library for the town resulted in an electoral tie, defeated on appeal.

[5][6] The current library, Shutesbury's first and only, was erected in 1902 and is very small—768 square feet total—and cannot provide modern amenities such as running water.

In the northwestern corner of town lies Lake Wyola (formerly Locks Pond), bordered on its east end by wetlands.

Shutesbury is bordered by Wendell to the north, New Salem to the east, Pelham to the south, Amherst to the southwest, and Leverett to the west.

U.S. Route 202, officially dedicated as Daniel Shays Highway, travels along the eastern edge of town.