It was first settled about 1771 as a part of Alexandria, but mountainous terrain separated it from the rest of the town. In 1795, it was set off and incorporated, the name suggested by a settler from Danbury, Connecticut. Ragged Mountain is a prominent mountain with multiple summits which occupies the southern portion of town and is home to Ragged Mountain Ski Area with an elevation of the Danbury summit of Ragged at 2,225 ft. Danbury is located approximately 35 miles (56 km) from Concord. It is the northernmost town in Merrimack County and lies within the Dartmouth-Lake Sunapee Region.
Danbury is an excellent selection for primary home, second home or retirement home living in a rural NH community.
Some notable recreation areas are:
* Ragged Mountain Resort, ski and golf vacation resort
* Bog Pond Dam or Danbury Bog, 100-acre (40 ha) recreational reservoir
* Waukeena Lake, 56-acre (23 ha) cold water lake, motorboats restricted
* School Pond, 37-acre (15 ha) warm water pond, motorboats restricted
* Emily & Theodore Hope Forest 375-acre (152 ha) property preserved by the Society for the Protection of New Hampshire Forests (SPNHF)
* Rosemary's Woods, 215-acre (87 ha) SPNHF property
* Newfound Lake is nearby.