Prior to contemporary settlement, Gibbs Pond Road, Browns Road, Old Nichols Road, and Smithtown Boulevard were the primary roads passing through Nesconset. In 1904, brothers and French immigrants Louis and Clemen Vion came out to southeastern Smithtown from Manhattan on numerous occasions as sportsmen. By 1910, the brothers fell a line of trees off of Gibbs Pond Road, immediately south of modern-day NY-347 to create Midwood Avenue and built their home on this street, where it is still present.
As the population grew, a lumber yard, general store, and post office were constructed in 1908, as well as the historic Nesconset Schoolhouse in 1910 and the Nesconset Fire Department in 1935, with a center emerging where Lake Avenue South and Gibbs Pond Road meet. The brothers decided to name the newly established settlement after Smithtown's local historical figure, the Nissequogue sachem, Nasseconsett, who deeded the Nissequogue people's land to Richard Smith.
By 1930, Nesconset had a population of 50 people centered along Midwood Avenue, spread along Smithtown Boulevard and Gibbs Pond Road. The construction of NY-347 in the 1950s opened the southeast corner of Smithtown to rapid residential development to Storybook Homes by bisecting the small center of the hamlet. This forced the shift of the commercial center of Nesconset to Smithtown Boulevard between Old Nichols Road and Southern Boulevard, which was known formerly as East Hauppaugue.
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