The first permanent settlers in Auburn made the long trek from Watertown in 1722. They came for land, and the community remained primarily a farming town during most of the 19th century. By the end of the century, however, improved transportation and expansion of industrial developments in Worcester created a commuting population which lived in Auburn and went to work in Worcester every day. This initiated the town's significant bedroom community component and resulted in clusters of suburban residences being developed. These clusters grew and spread as streetcar service between Auburn and Worcester was established, although the watermills making yarn and textiles still  operated and there was still a strong farming element.

After World War II, much of the remaining agricultural land was subdivided and developed, and Auburn became home to its present population, which lives in town but goes elsewhere to work. The town has retained some of its colonial buildings and the original stage coach stop to display its historic past.

A more recent event, however, ties Auburn to the 21st century and beyond. The first liquid propelled rocket ever flown was set off from Auburn by Dr. Robert Goddard in 1926, heralding the interplanetary and orbital rockets which continue to take Americans toward the stars.