Jokingly referred to as the 'Best Dam Town in Maine', Milford is home to a large dam on the Penobscot River. Milford's first settlers arrived in 1800 and it's first permanent resident was Joseph Butterfield. Because of it's proximity to the Penobscot River and the fact hat it had such a powerful dam, Milford was a booming sawmill community during the 19th century. The dam, now named Bodwell Water Power Co. Plant, still functions and is listed on the National Register of Historic Places, as is the Milford Congregational Church.
Milford is home to the Sunkhaze Meadows National Wildlife Refuge, which is managed by the US Fish & Wildlife Service and features eleven different ecosystems. Sunkhaze Meadows National Wildlife Refuge started out as a peat bog to be used by a peat milling company, but is today a wildlife sanctuary that is frequented by nearly a 150 different bird species.