Grafton was incorporated in 1778 and is located 30 Miles northwest of Concord. The highest point in Grafton is the summit of Melvin Mountain, at 2,177 feet (664 m) above sea level. Grafton Pond is in the western part of town and is a 321-acre water body. The pond is part of the Mascoma River watershed, flowing to the Connecticut River. It is an active loon nesting site, one of few remaining in New Hampshire. The pond is located within the Grafton Pond Reservation.
It is also home to Ruggles Mine, an open-pit mine that is no longer in operation and has been turned into a tourist attraction. The mine is located a short distance from Route 4 at the village green. The spacious pit includes tunnels and underground chambers, some of which are filled with water, for exploring. Visitors are allowed to keep any of the various minerals that are to be found on the mine floor or that can be hammered loose from the walls of the pit.
Grafton is the focus of the Free Town Project, a movement that seeks to encourage Liberatarians to move to the town.