Located between Whitbourne and South Dildo, on the Avalon Peninsula in Trinity Bay South is the inland community Blaketown. Local tradition states the name Blaketown originated from the phrase "By-the-Lake-Town" (Dildo Pond representing the lake). Blaketown is built on one side of Dildo Pond in a forest area.

Officially, the settlement was first called the Dildo Agriculture Road and Dildo Pond. This community was the result of an experiment in farming of the first effort in government-sponsored resettlement in Newfoundland which was founded by the administration of Robert Thorburn in 1887. In 1888, the name was changed to Blaketown in honour or Sir Henry Arthur Blake (Governor of Newfoundland at this time). Thorburn's plans to expand the economy and create employment resulted in the community of Blaketown.

In the beginning it was set up to encourage agriculture and lumbering, and contract payment for clearing land was offered as a motivation for settlement. Parcels of land were surveyed, however, land-clearing by contract failed to attract enough settlers. The work force of Blaketown was primarily fishermen, not farmers; the soil that was too poor to support full-time farming, resulting in Blaketown being unsuccessful as an experiment in agriculture.

Although the Government provided funds for the moving of families to Blaketown, no support was provided for the re-training the settlers In farming methods, and as a result, the residents relied upon more traditional work in fishing (from South Dildo) and lumbering.

Other branches of employment created in the area because of the mink industry included: the whale factory and fishmeal plant at Dildo, the commercial fishery and blueberry industry (offshoot from the cold storage facilities that were built).