On March 27, 1809, by an Act of Legislature, a large portion of land was separated from the territory of Lumberland and designated as the Town of Bethel. The Leni-Lenape Indians were the first inhabitants. Among the first settlers were John, George, and Peter Pintler, from Sussex, New Jersey, who set up their homestead in 1798 between what is now known as White Lake and Bethel. By 1810 several settlements were set up in different parts of the Town including Hurd Settlement, Fraser Settlement, Briscoe, North White Lake, Bushville, and Stephensville. With the completion of the Newburgh-Cochecton Turnpike (now Rt 17B) more hamlets sprouted along and near its route: Mongaup Mill, Black Lake, Moscoe, White Lake, and Bethel. In 1810, the first town meeting was held with John Conklin as Supervisor.

In the mid 1800's, the construction of hotels began. Most were developed from farmhouses which were turned into boarding houses. Hotel Rita, The Mansion House, Gray's, the Kenmore, and the Empire House were all located around the lake and successful into the 1940's. During the late 1920's, North White Lake became known as Kauneonga Lake (the old Indian name). As the hotel business began to decline, bungalow colonies were introduced. Some still remain today, located near or on the lake.
In 1928, A. N. Smallwood started to develop into a summer retreat of "log cabins" land once farmed by families with names such as Gabriel, Ballard, and VanKeuren. He called it Mountain Lakes but it soon became Smallwood after its founder.

From the day of tanneries, sawmills, and grist mills, Bethel has continued to progress while maintaining its small town feel. Many country stores, farms, and other businesses still remain, some dating back to 1901. Visit with some of the "old timers" to hear wonderful tales of the hotel years and Woodstock. They are usually friendly and willing to gab for hours

The above condensed from "The Town of Bethel", a brief history by Bea Schoch, Town Historian