Bethlehem was first established in 1774 as Lloyd’s Hill, the last of the provincial land grants. Voters elected to change the name to Bethlehem following the Revolution. This was done on the last Christmas Day of the century and the town was so incorporated on December 27, 1799.

In the early 1800’s Bethlehem was a way station for stagecoaches traveling to Crawford Notch and Portland, Maine. Taverns and blacksmith shops lined Main Street to accommodate the steady stream of travelers passing through. The beauty of Bethlehem began to assert itself and people began to stay. As the numbers grew, settlers added to their farm incomes by taking in summer boarders and eventually building tourist homes. After the Civil War, Bethlehem emerged as a popular mountain resort known for its clean, crisp air. More than 30 luxury hotels and boarding houses catered to summer guests. Magnificent private cottages adorned the hillsides. Vacationers crowded the wooden sidewalks. In the evenings, a stroll on Main Street was a delight to the senses with tantalizing aromas from the hotel kitchens. Music from the dance bands carried through the air. Men and women in formal dress filled the streets with color.