[4] The village is located on the Canada–United States border and is contiguous with the district of Rock Island in the town of Stanstead, Quebec.

By 1859, the area was noted for the beauty of its farmhouses and luxuriant farmland, set before the distant vista of Lake Memphremagog and the Green Mountains.

[7] Because of an erratic survey, the border separating Canada from the United States was drawn incorrectly by the surveyors in the 18th century, above the 45th parallel which was the agreed boundary.

[9] A tool-and-die factory, once operated by the Butterfield division of Litton Industries, is also divided.

It was bought in 1988 by Group Tivoly, a cutting tools company based in France,[12] and has 160 employees.

In 2007, the village of Derby Line met with the Mayor and Council of Stanstead in joint session in Québec, to be addressed by the authorities.

[13][14] A telephone call between Derby Line, Vermont, and Rock Island, Québec, is local.

[15] According to the United States Census Bureau, the village has a total area of 0.7 square miles (1.8 km2), all land.

A local subsidiary of an international tool manufacturer employs 180 workers from the area.

[19] Drinking water for the adjacent towns of Derby Line and Stanstead is pumped from wells in Canada, stored in a reservoir in the United States and distributed through a system maintained by Canadians.