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Derry is part of the Rochester-Dover, NH–VT Micropolitan Statistical Area. History [ edit ] The area was once known as "Number Four", from its position in a line of towns running north and south along the Connecticut River (the other three were Charlestown, New London, and Lyme). The first settlement in what is now Derry was made by James Folsom soon after 1723. In 1734 or 1735, a tract called "Mile Square" or "Mile Town" was set off for John Thompson by Governor Jonathan Belcher; this included Number Four. Thompson sold his land to David Smith in about 1741; it eventually became known as Derryfield. At that time, there were nine families living there. By 1820 it had become a village with over 200 residents,:p.9 though still referred to as Number Four Village on maps into the 1850s.:p.