Lisbon was named after Portugal's capital after being incorporated from Norwich in 1786. The town is located in the east-central part of the state, in New London County. Lisbon’s early economic growth was possible due to the Quinebaug and Shetucket Rivers. The agricultural industry and textile factories were the base of local commerce during the 19th century. In 1837, the new stage of the town’s development started. The Norwich-Worcester Railroad made a tunnel, the first railroad tunnel in the US, through local hills, along the Quinebaug River.
Today, Lisbon is a small town that retains its rural aesthetic and substantial historical background.