In 1961, Son of Sam mass murderer David Berkowitz was a camper at a now defunct summer camp in Bethel.

The Town of Bethel, which is primarily rural in character, was part of the old Borscht Belt Catskills resort area.

Although some bungalow colonies continue to exist, catering to a largely Orthodox Jewish clientele during the summer, most of the old resorts which had their heyday from the 1930s to the early 1970s have long since closed.

The Town of Bethel was brought to the world's attention in 1969, when nearly 500,000 people gathered at Max Yasgur's Farm for "Three Days of Peace and Music".

In 1998, a concert was hosted at the original site and this helped ignite the vision of philanthropist Alan Gerry and daughter Robyn to acquire the land and build what was to become Bethel Woods Center for the Arts.

On July 1, 2006, Bethel Woods Center for the Arts opened on the site of the original Woodstock Festival and hosted the New York Philharmonic.

Other performers during the summer of 2007 included the New York Philharmonic, Bob Dylan, Brad Paisley, Lynyrd Skynyrd with The Marshall Tucker Band, Earth, Wind & Fire, Arlo Guthrie, Richie Havens, Phish and others.

In early 2008, The Museum at Bethel Woods opened near the original site of Max Yasgur's farm to complement the concert space.

The state and the town council of Bethel subsequently passed laws prohibiting mass-event types of festivals.