Located along United States Route 2 and Stowe Street south of Thatcher Branch of the Winooski River, the sprawling village has been shaped by changes in transportation in the 19th and 20th centuries, and by key economic developments such as the founding of the Vermont State Hospital, which anchors the village's southern end.

When Main Street, a stagecoach route paralleling the river opened in the 1790s, development moved to that area, including the construction of churches, residences, and businesses.

Thatcher Branch was also amenable to the development of industry powered by its waters, whose early successes spurred further growth.

A cluster of commercial development took place in that area, and industries arose along the railroad corridor.

Vermont State Hospital opened in 1892, spurring additional growth south of the station, which included development of Randall Street, paralleling Main Street, as a tree-lined residential enclave.