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Derby, city, coextensive with the town (township) of Derby, New Haven county, southwestern Connecticut, U.S. It lies at the junction of the Housatonic and Naugatuck rivers, a few miles west of New Haven. Early settlement developed around a trading post established by Captain John Wakeman in 1642 in an area bought from the Paugusset Indians; Wakeman was joined by colonists from Milford in 1651. In 1675 it became a town and was renamed for Derby,...