Lee, Massachusetts, occupies land which was originally territory of the MahicanIndians. The first non-native settlement in the area was known as Dodgetown as early as 1760. Dodgetown was named after its founding settler, Asahel Dodge, who immigrated to the area from Cape Cod. Lee was incorporated in 1777 from parts of Great Barrington and Washington. It is named after American Revolutionary War General Charles Lee. Lee is a former mill town.
In the autumn of 1786 during Shays' Rebellion, about 250 followers of Daniel Shays encountered state troops commanded by General John Paterson near East Lee. The Shaysites paraded a fake cannon crafted from a yarn beam, and the troops fled.