On July 4, 1761, the town of Hanover was granted a charter by Benning Wentworth, Royal Governor of the Province of New Hampshire, in consequence of a petition presented by Edmund Freeman and Joesph Storrs "in behalf of themselves and as agents for about two hundred and forty others from the Colony of Connecticut."

The grant 7 miles by 7 miles was divided into sixty-eight shares, two of which the governor reserved for himself, as was the custom. This governor's tract of 500 acres later became the site of Dartmouth College. Other reserved shares included London Society for the Propagation of the Gospel, Church of England, one for the first settled minister, and for the schools. The rest were conferred on the petitioners, or proprietors, by a drawing of numbered town lots and river lots in open meeting from a "covered hatt". The geographical center of the grant was off the Three Mile Road in Hanover Center.

There has always been some question regarding the name "Hannover", as it was spelled in the charter. Some authorities say there was a parish named Hannover in the town of Norwich, Connecticut. Others feel that the governor gave the name with direct reference to the reigning line of English Kings, the House of Hannover, since this was the year following the accession of George III.

Hanover's approximately 31,00 acres are diversified in surface contour, with Moose Mountain extending entirely across the eastern part, Hoyt's Hill to the south, Lord's Hill and Pinneo Hill to the northeast, with the whole plain sloping gradually west to the Connecticut River. Of the eight small streams flowing through the town, the principal one is Mink Brook. The Mink Brook natural area, along with the Occum Ridge and River Ridge, is part of a glacial esker - a sand and gravel deposit formed as the glacier ice melted.

The first settler came in May 1765, and within five years Hanover had grown into a farming community of about twenty families. The first Town Meeting was held in July 1767. Before that the proprietors had met in Connecticut. As the town grew, new mills attracted more settlers, and Mill Village (Enta) became the center of town affairs, boasting two saw mills, a grist mill and later, two factories, stores, harness shops, blacksmith shop, a cooperage, school and a church.

Prior to 1775, the Town was not represented in the Provincial Assembly of New Hampshire at Exeter, although efforts were made to obtain that privilege, Under an Act of November 4, 1775, Hanover was lumped together with Lebanon, Relham (Enfield), Canaan, Cardigan (Orange) Grafton and the new town of Dresden (formed by the transformation of the College district of Hanover into a separate entity), with a single representative appointed to the group.

Dissatisfied with this form of representation, these towns joined together. The Dresden Union formally declared their independence of New Hampshire in 1778, and became a part of Vermont. This Dresden Union was opposed by Ethan and Ira Allen and the Bennington Party when they discovered that Vermont could not attain statehood so long as she laid claim to any of the towns east of the Connecticut River. After much conflict the Dresden Union dissolved ties with Vermont in 1782 and the Town again took the name of Hanover, New Hampshire. Six years later, Dresden again became part of Hanover. It was not until 1786 that Hanover first received representation in New Hampshire General Court, the state legislature.

The greatest stimulus to the growth came with the establishment of Dartmouth College in 1770. The Reverend Eleazar Wheelock had decided to move his Indian charity school, and direct his attention not only to the education of Indians but English youths as well. Several locations were considered and finally the southwestern part of Hanover was selected. On December 13, 1769, the governor issued the charter on behalf on the king, which brought into being the college which was to be called Dartmouth in honor of its principal English Benefactor, Lord Dartmouth.