In 1937, after plans proposed in 1927 to build a bridge spanning the St. Clair River languished during the Great Depression, the Michigan Highway Commission and the Minister of Highways for Canada hired Ralph Modjeski and Frank H. Masters and their Canadian associates, Charles Monsarrat and Philip Louis Pratley to design and build what would become the Blue Water Bridge.

In developing a design, Modjeski faced obstacles posed by the U.S. Army Corps of Engineers, which sought to ensure that the St. Clair River remain navigable for military and commercial vessels.

Originally, Modjeski proposed a mammoth suspension-style bridge with tall towers and massive cable anchorages; however, because of the 150 ft (46 m) vertical clearance requirement for shipping, he opted instead for a cantilevered through-truss design.

The U.S. side of the bridge became toll-free in February 1962, after the Governor John Swainson used an executive order to cancel the toll.

To comply with the law, the department had to repay the federal government $348,000 for the grant it received in 1938, which funded the approach road.

That grant was repaid to the federal government and in September 1971, tolls were restored, however only collected in the eastbound direction on the Michigan side.

Around this time, the bridge's sidewalk was also removed; this was done to add a third Reversible lane on the roadway, as long lineups on each side's crossing were common.

[17][18] In 1985, the U.S. Congress allowed Michigan to increase the toll to create a state matching fund for proposed improvements to the bridge plaza.

As a requirement for this authority, after the bonds for repayment of construction costs were retired, the tolls had to be reverted to levels sufficient to operate and maintain the structure and associated facilities.

In July 1991, the Federal Highway Administration (FHWA) signed a "129A Agreement" with MDOT regarding the disposition of toll receipts.

This agreement allowed the department to fund both the annual operating costs of the bridge and the state's matching share of the BWB Plaza Improvement Project.

On the American side, the I-beam girder overpass crossing Pine Grove Avenue was replaced by a much wider embankment, which also added a four-story customs office building in the center.

On the Canadian side, the original booths were demolished; they had been in use since 1938; while they were positively noted for their Art Deco style, they were too low to accommodate modern semi-trailer trucks which previously had to be directed to the outside.

The $55 million plaza improvement project was completed in November 1996, at which the toll was reverted back to its original cost.

[23] The selection of the continuous-tied arch proposal was initially controversial as it did not have much public opinion support, and critics regarded this type as awkward.

[13] On July 5, 2023, the westbound bridge was closed for blast cleaning, deck repairs, and other minor rehab work.