The Town's motto is "Pride in the Past, Faith in the Future". Historic preservation is a focus for citizens as indicated by the formation of the Federalsburg Historical Society. The Town has a long and rich history. Originally known as "Northwest Fork", the name Federalsburg can be traced back to the 1790's and most likely originated due to the large Federalist Party movement in this area in the late eighteenth century. The Town was incorporated in 1824. Industry consisted of shipbuilding, saw and grain mills, and agriculture. Modern day Federalsburg is home to three industrial parks.