This town was first settled by families from Exeter as a parish of Chester, known as Freetown, because it was exempt from the usual obligation of reserving its tall pine trees for masts in the royal English Navy. In 1764, the town was named Raymond for Captain William Raymond, who had raised a company of soldiers to fight in the war against Canada.
Land in Raymond was granted to soldiers from Beverly, Massachusetts, and it was also known as Beverly-Canada.