[1] Named after statesman Daniel Webster, the town was founded by industrialist Samuel Slater, and was home to several early American textile mills.

The primary founder was the manufacturer Samuel Slater, who came to the area after his celebrated activities in Pawtucket, Rhode Island, and founded several textile mills, one of which was taken over by the Cranston Print Works in 1936.

Slater spent his last years in Webster and died and is buried there in Mount Zion Cemetery.

The town is bounded on the north by Oxford; on the east by Douglas; on the south by Thompson, Connecticut, and on the west by Dudley, with which it is most closely tied culturally and politically.

[18] St. Joseph Basilica, the oldest Polish-American Catholic parish church in New England, is located in Webster.

Three of Webster's Catholic churches also support elementary schools: St. Anne's (Sacred Heart Parish), St. Joseph's, and St. Louis.

Indian Ranch is a summer concert venue located on Webster Lake, and has hosted musical acts such as Charlie Daniels, Thomas Rhett, The Barenaked Ladies, Scotty McCreery, Third Eye Blind, Huey Lewis and the News, Gavin DeGraw, and others.

It is currently home to Indian Princess, a riverboat that once rode the Mississippi River, where guests can tour the lake.

[21][22] In fiscal year 2008, the town of Webster spent 1.07% ($299,159) of its budget on its public library—approximately $17 per person ($22.40 adjusted for inflation to 2022).