Litigation from two conflicting claims, however, slowed the town's development. On July 3, 1637, Sir Ferdinando Gorges, the Lord Proprietor of Maine, had granted this part of New Somersetshire to Sir Richard Edgcumbe of Mount Edgcumbe House, situated at Cremyll in Cornwall, England. But the Kennebec Company conveyed it in 1752 to William Bowdoin of Boston, older brother of James Bowdoin. The contested ownership went to court, whereupon Bowdoin won because Edgcumbe's grant was found obsolete and indefinite. On September 18, 1762, the Massachusetts General Court incorporated the town as Bowdoinham, named in honor of William Bowdoin. It originally included Richmond, set off in 1823, and portions of Topsham and the Plantation of West Bowdoinham, set off in 1788 as Bowdoin.
Farmers grew apples, wheat, hay and potatoes. They also raised sheep. Shipbuilding was an important early industry which faded over time, with the first vessel launched in 1768, and the last of any size in 1912. By 1886, the town had 3 sawmills, a gristmill, plaster mill, 2 clothing factories, a cheese factory and about a dozen ice companies. It also produced boots and shoes, tinware, carriages and harness. Once a site of wharves to ship lumber and other goods, Cathance Landing became the town's business center called Bowdoinham Village.
The town is crossed by Interstate 295 and state routes 24, 125 and 138. It borders the towns of Richmond to the north, Bowdoin to the west, and Topsham to the south.
There were 1,027 households out of which 35.1% had children under the age of 18 living with them, 58.0% were married couples living together, 9.4% had a female householder with no husband present, and 26.7% were non-families. 20.1% of all households were made up of individuals and 5.6% had someone living alone who was 65 years of age or older. The average household size was 2.54 and the average family size was 2.90.
In the town the population was spread out with 25.8% under the age of 18, 5.9% from 18 to 24, 30.1% from 25 to 44, 28.1% from 45 to 64, and 10.1% who were 65 years of age or older. The median age was 39 years. For every 100 females there were 99.5 males. For every 100 females age 18 and over, there were 98.9 males.
The median income for a household in the town was $44,779, and the median income for a family was $52,372. Males had a median income of $33,322 versus $28,810 for females. The per capita income for the town was $21,118. About 10.0% of families and 12.8% of the population were below the poverty line, including 21.3% of those under age 18 and 16.7% of those age 65 or over.