Between the 13th and 16th centuries, much of land surrounding Milltown was owned by the nearby Killagha Abbey, the ruins of which now stand one and a half miles outside the town. Following the Dissolution of the Monasteries, the estates were granted to the Spring family and then, following the Irish Confederate Wars, to the Godfrey family. The modern day settlement at Milltown was developed by Captain John Godfrey in the 1750s as the central town of their estate. The development of Milltown was a deliberate attempt at urban planning by the Godfreys who hoped such development would increase the income and prosperity of their estate through rents, market tolls and the promotion of industries.