Owls Head, which had been a part of South Thomaston, became a town on July 9, 1921. Included in this section were the areas of Ash Point, Ingraham's Hill, Crescent Beach, Holiday Beach, Ballyhac, and of course the section where the Owls Head lighthouse is located.
People in this Owls Head area had been concerned about problems involving the one room schools over the years. They felt that the five schools here had been neglected, and that the schools in the South Thomaston Village area (the Keag) were receiving all the benefits. So this was one reason for the separation. The dividing line between Owls Head and South Thomaston begins on the Dublin Road (off the Ash Point Road) at the bridge, with the Town's area extending completely around the shore to the Rockland City line (at Ingraham's Hill).
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It is generally believed the Town derived its name from sailors who in 1759 observed the tall headland of trap rock extending far into the water in the extreme northeastern end of the town (the lighthouse area) and imagined that it bore a resemblance to the neck and head of an owl.
When Owls Head was visited by Champlain in 1605, it was called Bedabedec Point the Indian word meaning, "Cape of the Winds". Some historians claim the name is of Indian origin and is expressed in their language by the word, "Mecadacut", meaning "Owls Head".