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The area around the river was occupied by members of the Patuxet tribe, who were part of the larger Narragansett tribe.[3] In the native language, the word "pawtuxet" means "little falls." [3]
In 1638, Roger Williams purchased the land north of the Pawtuxet, thus foundingProvidence.[3] In 1642, Samuel Gorton purchased the land south of the river, thus founding Warwick.[3]
The Pawtuxet River Valley played an important role in the early development of the textile industry in New England during the 19th century.