On February 25, 1807, Meduncook Plantation was incorporated as Friendship. By 1859, when the population was 691, the village had two shipbuilders, two gristmills, one shingle mill and three sawmills. By 1880, when the population was 938, other manufactures included sails, carriages, boots and shoes. Boatbuilding remained the dominant industry in town, which became famous for producing the Friendship Sloop, a gaff-rigged sailboat designed for lobstering and fishing. Each summer the town hosts the Friendship Sloop Races.
