[4] Named for a Mohegan word meaning "Pleasant Valley"[5] Wauregan has a long history as an industrial village.

In 1850, Amos D. Lockwood, who was involved with the Quinebaug Mill in Danielsonville, bought the water privileges and surrounding land at Wauregan.

[3][6] Lockwood became the mill's first agent and recruited James S. Atwood as his superintendent, who became responsible for setting up all machinery and starting production.

The mill was expanded, workers' houses were built, and several amenities to Wauregan village life were added.

Another building in the mill village housed a firehouse, clubhouse, jail, and a reading room and library.

The mill would eventually reach a capacity of 56,616 spindles and 1,464 looms, with an annual output of eleven million yards.

The Atwood brothers continued to expand and improve the mill, which employed 325 men and 160 women and children as of 1917.

This partnership led to the development of the technology to produce fabric made of a blend of wool and rayon.

In the 1950s, free trade policies with Japan, which had modern equipment shipped to them by the U.S. as part of post-war reconstruction enabling them to produce fine cotton goods much more cheaply, resulted in the death of the New England textile industry as cheap cotton goods flooded the U.S. market.

In August 1955, torrential rains from Hurricanes Connie and Diane caused many dams along the Quinebaug River to break, including the one at Wauregan.

The company borrowed a large sum of money in order to be able to resume production but they didn't have enough working capital to repair and modernize their facilities.

James Arthur Atwood III was responsible for disposing of the company's assets to pay off their creditors.

The village extends eastward from the river up a gently rising slope towards Route 12 located at the crest of a ridge.

The boundaries of the historic district exclude a large tract of open land to the north that the Wauregan company once owned.