The first European settlers were the Acadians in 1670 at the western mouth of the Parrsboro Harbour, near Partridge Island. After they were expelled in 1755, they were replaced by New England Planters. The centre of settlement gradually shifted from Partridge Island to the sheltered estuary of the Parrsboro River where a harbour and surrounding mills grew. The settlement, at first named Mill Village, was renamed Parrsboro in honour of Nova Scotia Governor John Parr in 1784, and the town was incorporated on July 15, 1889.