It begins in the town of St. Albans at U.S. Route 7 (US 7) and runs north to the small village of Morses Line within the town of Franklin, where it intersects VT 235, approximately 0.5 miles (0.8 km) south of the Canada–US border.

North of VT 78, the route is town-maintained and internally designated as major collector 297.

It starts its journey north by immediately interchanging with Interstate 89 at Exit 20.

It continues to roughly parallel the Interstate before turning northeast and crossing into the town of Highgate, where it meets and briefly overlaps with Route 78.

Route 207 continues north out of Highgate into the extreme northern reaches of the state.