Granted to Richard Jenness and 93 others, it was named Ryegate, a variant spelling of Reigate in Surrey, England.

Sold to John Witherspoon and others, the southern half of town was purchased in 1773 by two agents for the Scotch American Company of Farmers from Renfrew and Lanark, Scotland, whose members began settlement in 1774.

Connected in 1847 to the Connecticut & Passumpsic Rivers Railroad, the town by 1859 was noted for producing butter and leather.

In 1890, a big brickyard opened; then in 1906, the Ryegate Paper Company began operation.

Blue Mountain, the highest point in the town, has an elevation of 2,192 feet (668 m) above sea level.

It is bordered by the town of Newbury to the south, Groton to the west, and Barnet to the north.

The Blue Mountain Union School (BMU) serves students from the town of Ryegate and consists of Pre-K through grade 12 housed in one building.

[7] On July 1, 2018, the State Board of Education temporarily reassigned the Blue Mountain Union School District to Orange East Supervisory under the Act 46 school district consolidation law.

Merger plans and implementation continue following lawsuits and local district votes.