One of the largest water powered sawmills then on the Penobscot River was built in Medway in 1820 by Gen. Boyd, who owned half the township. A second large mill was built soon after near what is now Medway Center, attracting settlers. Sawmills remained there as late as the 1920s. Boyd originally incorporated the town as "Kilmarnock", but the name was changed to Medway in 1854.
Geography
According to the United States Census Bureau, the town has a total area of, of which, of it is land and is water. The town is at the confluence of the East and West Branches of the Penobscot River
Demographics
2010 census
At the 2010 census there were 1,349 people, 576 households, and 400 families living in the town. The population density was. There were 658 housing units at an average density of. The racial makeup of the town was 98.8% White, 0.1% African American, 0.4% Native American, 0.3% Asian, and 0.4% from two or more races. Hispanic or Latino of any race were 0.2%. Of the 576 households 26.9% had children under the age of 18 living with them, 56.1% were married couplesliving together, 8.0% had a female householder with no husband present, 5.4% had a male householder with no wife present, and 30.6% were non-families. 24.1% of households were one person and 10.3% were one person aged 65 or older. The average household size was 2.34 and the average family size was 2.74. The median age in the town was 47.8 years. 20.2% of residents were under the age of 18; 6.4% were between the ages of 18 and 24; 18.8% were from 25 to 44; 37.6% were from 45 to 64; and 17% were 65 or older. The gender makeup of the town was 49.7% male and 50.3% female.
At the 2000 census there were 1489 people, 587 households, and 437 families living in the town. The population density was 36.4 people per square mile. There were 651 housing units at an average density of 15.9 per square mile. The racial makeup of the town was 99.13% White, 0.07% African American, 0.27% Native American, 0.13% Asian, and 0.40% from two or more races. Hispanic or Latino of any race were 0.27%. Of the 587 households 35.3% had children under the age of 18 living with them, 64.1% were married couples living together, 5.8% had a female householder with no husband present, and 25.4% were non-families. 20.8% of households were one person and 7.0% were one person aged 65 or older. The average household size was 2.54 and the average family size was 2.92. The age distribution was 24.9% under the age of 18, 6.5% from 18 to 24, 29.1% from 25 to 44, 29.1% from 45 to 64, and 10.4% 65 or older. The median age was 39 years. For every 100 females there were 111.2 males. For every 100 females age 18 and over, there were 104.8 males. The median household income was $33,646 and the median family income was $40,063. Males had a median income of $42,353 versus $18,917 for females. The per capita income for the town was $15,264. About 8.6% of families and 11.5% of the population were below the poverty line, including 12.4% of those under age 18 and 11.2% of those age 65 or over.