Once consisting of several large land grants by Colonial Governor John Wentworth, the town was first named New Madbury, after the seacoast town of Madbury. In 1772, a road was built through Pinkham Notch, and the area was first settled in 1778 by Benjamin Copp and his family. In 1800, the community was renamed in honor of President John Adams, who was then in office. The name Adams stuck until the town was incorporated in 1829, when Andrew Jackson, the hero of the Battle of New Orleans, was inaugurated president. Governor Benjamin Pierce, a staunch backer of President Jackson, was influential in changing the name to Jackson. Only one vote was cast against the switch.

In 1847, artists of the White Mountain School began arriving in Jackson to paint the scenic beauty of the White Mountains. Others would follow, and in 1858, Joshua B. Trickey opened the Jackson Falls House. The Portland & Ogdensburg Railroad began service to Glen station at nearby Bartlett in the early 1870s, and several hotels were built to accommodate a growing infusion of tourists. Thorn Mountain House, built by Trickey in 1869, would evolve during the 1880s into Wentworth Hall, still in business today. Designed as a grouping of cottages around a main service building, the hotel included such amenities as a casino, built in 1886, and a hydroelectric plant, built in the 1890s. By the 1920s, 40 trains a day delivered passengers to Jackson.

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