The Town of Starksboro was chartered November 9, 1780 by the Republic of Vermont and was named in honor of Brigadier General John Stark. When the first United States Census was taken in 1791, the Town as chartered had nine families living within its bounds, a total of 40 people. All settlement was in the Lewis Creek Valley.

Starksboro's population grew rapidly during the early 1800s from 40 people in 1791 to 1,437 by 1860. Throughout the remainder of the 19th century and the first half of the 20th, Starksboro's population declined, reaching a low of 502 people in 1960.

Currently, Starksboro is undergoing its second major growth period since the first settlers arrived in 1788. Since 1960, Starksboro has experienced exceptional population growth, doubling in size between 1970 and 1980. According to the U.S. Census Bureau in 2000, the Town's population stood at 1,898 people. Starksboro now has a larger population than at any time since it was settled. The proximity of Starksboro to Burlington and the relatively easy commute to other job centers in Chittenden County, Middlebury and Vergennes make Starksboro a desirable place to live for people who would like to settle in the region.