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Prior to its settlement, in 1686, by white settlers, the town was the location of a Prayer Indian village called Nashoba Plantation, which was situated on the land between Lake Nagog and Fort Pond, and settled mostly by the Nipmuc tribe. Upon its settlement by Europeans, the town was initially supposed to be called "Lyttleton" but its name received its current spelling due to a misspelling in the newspaper. It was officially incorporated in 1715.

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