Needham was incorporated in 1711 and has experienced numerous changes over its history. Early settlers relied primarily on agriculture and grazing plus some winter lumbering with orchards and tanneries as supplements in the 1700s. Saw and grist mills were opened along the Charles River through the 18th century. Extension of the rail and land speculation encouraged settlement, and the town saw the growth of industrial employment and production at the same time during the mid-19th century. 

Knitters from the English Midlands, displaced by economic changes in their own country, migrated to Needham and the surrounding towns to reestablish their businesses. The most famous of these was the William Carter Company, which still produces fine knitwear (though no longer in Needham). Needham manufacturers made knit goods, underwear, hats, shoes, and silk, although attempts to cultivate silk worms were short-lived.