Narragansett was incorporated as a town in 1901. Prior to that time, it was part of South Kingstown, with local history dating back to 1675, when Roland Robinson purchased land from the Narragansett Indians in Pettaquamscutt and Pt. Judith.

Shipbuilding was an important industry and sailing vessels were built on the Narrow River at Middlebridge. In the early 1700's, South Ferry and Franklin Ferry were thriving communities offering ferry service to Jamestown and Newport for more than a hundred years. Landmarks such as Ferry Church were on every sea captain's chart of Narragansett Bay as they navigated the waterways.

In the late 1800's and early 1900's, Narragansett became the premier vacation spot for the wealthy. It was well known as an elegant summer resort with a dozen or more grand hotels and many large estates and "cottages". Probably the most prominent landmark was the Narragansett Casino, covering nearly one square block from Ocean Road to Matheson Street. The towers on Ocean Road served as the main entrance and covered promenade are all that remain after a devastating fire in 1990.

Port Judith Pond has long been one of New England's important fishing ports. Because of its accessibility and proximity to popular fishing grounds, the pond has been rediscovered as a popular harbor for cruising, sail and sportfishing. Located on the west bank of Narragansett Bay, Point Judith pond is protected by a granite breakwater. The pond is home to several marinas, restaurants and shopping.