Paugnut State Forest came into existence in 1929, when the State purchased 1127 acres. This purchase included a lookout tower that was established by the American Brass Company. Years ago, a series of towers were found throughout the state to serve the purpose of locating forest fires. Today, this tower, like many others is gone, as an airplane patrols the sky to report any fires.

The majority of the remaining forest was acquired between 1930 and 1950. With a small recent addition, the forest is now 1,646 acres. Paugnut is located within the towns of Torrington and Winchester, abutting Burr Pond State Park.

Paugnut State Forest is managed for sawtimber, firewood, wildlife habitat, and recreational activities such as such as hiking, hunting, fishing, swimming, boating, and bird watching.