Lydford-on-Fosse straddles the Fosse Way, an ancient Roman road which linked the cities of Lincoln and Exeter.

The village takes its name from two Saxon words, Lyd torrent or noisy stream and Ford a passage crossing a river,[2] and was established before the Norman Conquest.

The Manor of West Lydford was bequeathed by the 4th Earl of Derby in his will of 1593 to his second son the Hon William Stanley of Lathom, Lancashire.

Conservation matters (including trees and listed buildings) and environmental issues are also the responsibility of the council.

It is also part of the Glastonbury and Somerton county constituency represented in the House of Commons of the Parliament of the United Kingdom.