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Wakefield was a focus for settlement due to its location on the Saugatucket River and the old Post Road, which was laid out early in the 18th century. Settlement began in the early 18th century with establishment of a small mill on the Saugatucket River. A tavern and stagecoach stop were established in 1745 and a snuff mill was built around 1765. The textile industry began to become an important source of economic activity in 1807 when a carding mill was established on the Saugatucket River. By 1822, the village had about 60 residents and consisted of nine houses, a store, the carding mill, a grist mill, a saw mill, and a blacksmith shop.