In the past, the town of Douglas was an industrial powerhouse defined by the Douglas Axe Manufacturing Company, which was founded in the early 1800s. The company became a global leader in tool production, earning the town a reputation for high-quality craftsmanship and helping to drive the economy of the Blackstone River Valley. During this era, the town was a bustling center of trade and manufacturing, even attracting the attention of Dr. William Douglas, who donated a significant library and endowment that gave the town its permanent name.

Today, Douglas has transitioned into a quiet, residential community that prioritizes its natural landscape over heavy industry. The primary landmark is now the Douglas State Forest, a massive 5,907-acre park that offers hiking, swimming at Wallum Lake, and rare Atlantic white cedar swamps. While it retains its historic New England charm, the present-day town serves largely as a scenic suburb for commuters working in Worcester or Providence, balancing its rich manufacturing heritage with a modern focus on outdoor recreation and conservation.