Chartered in 1761 by Governor
Benning Wentworth, the town was named after the hometown of many early settlers,
Canaan, Connecticut, which had been named by
Puritans for the biblical land of
Canaan. It was settled in the winter of 1766–1767 by John Scofield, who arrived with all his belongings on a hand
sled. The land was filled with rocks, making agriculture difficult. The town constructed a broad road for its main street on a stretch of level land.
Canaan Union Academy was built on the site and was limited to white students; it operated for the next 20 years. After the academy's closing, residents sympathetic to
fugitive slaves operated a station of the
Underground Railroad to help the people reach
Canada or settle in New England. The
Northern Railroad (predecessor of the
Boston & Maine Railroad) was constructed to the town in 1847, spurring development.
Water powered
mills were built on the streams. By 1859, the population had reached 1,682, and Canaan had one
gristmill, three
lath and
clapboard mills, and one
tannery. The
Canaan train wreck occurred on September 15, 1907. west of Canaan Station, the southbound
Quebec to
Boston express, crowded with passengers returning from the
Sherbrooke Fair, collided head-on with a northbound Boston & Maine
freight train. The accident claimed 26 lives, and 17 others were seriously injured. The accident was found to be due to a mistake made by a dispatcher, who mis-identified a train in one of his communications. It remains the train wreck with the largest loss of life in New Hampshire history. On June 2, 1923, the Great Canaan Fire burned 48 homes and businesses, destroying the heart of Canaan Village (East Canaan). ==Geography==