Liverpool was founded as a fishing centre in 1759, and named ofter Liverpool in England. The town only grew to prominence after the American Revolution when it was populated by United Empire Loyalists. Duirng the war it became a centre of privateer activity which preyed on American shipping.
During the 18th century the town became a major seaport. Expanding from a fishing centre it gained a large ship building industry and became an export centre, especially of timber.
The introdiction of steam shipping and the collapse of the Bank of Liverpool in 1871 severly hurt the towns economy and it went into a long decline. Its fortunes were temporarily revived in the 1920s when it became a centre for rum-runners exporting alcohol to the United States during prohibition.
In modern times the entire South Shore has become the centre of Nova Scotian tourism, and Liverpool has become a home for cottagers and tourists durign the summer months.