1777, Moultonborough was named in honor of Col. Jonathan Moulton, a legendary figure in state history. The town's historical development is closely tied to its location between lakes and mountains and to transportation routes established during the 19th century. Before the advent of tourism, Moultonborough remained primarily an agricultural economy with local supporting industries. Expanding railway and steamboat lines in the late 19th century brought seasonal tourism along with summer homes, grand country estates, and recreational facilities. Long Island became a significant transportation hub, allowing people and goods to be transported all over Lake Winnipesaukee. By the mid-1830s, Moultonborough Corner, at the intersection of stagecoach routes between area towns and lakeside landings, grew into the municipal center. Moultonborough developed a tourism-based seasonal economy in the 20th century, and it is now best known for such landmark destinations as the Old Country Store and the Castle in the Clouds. It is also home to the annual Lee's Mills Steamboat Meet.