The town was founded in the early 1800s due to the abundance of marine resources such as fish, whales, and seals. Fish processing and local small business are major employers.
The town has a fast-growing tourist industry. It offers picturesque scenery, several bed and breakfasts, the Dildo Museum interpretive centre, the Historic Dildo Days celebration in August, the first cod hatchery in the province, and a replica of a giant squid caught in Dildo in 1933.
The town's name has attracted certain amounts of attention. The name may derive from a place name in Spain or Portugal; the name of a tree; or the shape of the headland.
Residents of Dildo are called Dildoians. [1]