Originally known as New Webster, the state legislature had its name officially changed in 1889 to honor William Allen Dills, the town's founder.
As of the census of 2000, there were 205 people, 111 households, and 45 families residing in the town. The population density was 516.1 people per square mile (197.9/km²). There were 126 housing units at an average density of 317.2/sq mi (121.6/km²). The racial makeup of the town was 92.68% White, 0.98% African American, 3.41% Asian, and 2.93% from two or more races. Hispanic or Latino of any race were 0.98% of the population.
There were 111 households out of which 15.3% had children under the age of 18 living with them, 33.3% were married couples living together, 7.2% had a female householder with no husband present, and 58.6% were non-families. 54.1% of all households were made up of individuals and 34.2% had someone living alone who was 65 years of age or older. The average household size was 1.85 and the average family size was 2.85.
In the town the population was spread out with 16.6% under the age of 18, 5.9% from 18 to 24, 24.9% from 25 to 44, 21.0% from 45 to 64, and 31.7% who were 65 years of age or older. The median age was 48 years. For every 100 females there were 66.7 males. For every 100 females age 18 and over, there were 59.8 males.
The median income for a household in the town was $18,750, and the median income for a family was $27,188. Males had a median income of $20,000 versus $20,000 for females. The per capita income for the town was $14,365. About 12.8% of families and 22.8% of the population were below the poverty line, including none of those under the age of eighteen and 30.9% of those sixty five or over.