Originally a part of the town of Fairlee, West Fairlee separated in 1797. The town was first settled by Nathaniel Niles that same year. The town remained predominant agricultural until copper was discovered in nearby Vershire in 1813. With the opening of the Ely Copper Mine in 1821 the town rapidly began to grow. The mine became the site of Vermont's largest labor revolt, dubbed the 'Ely War,' in 1883. Unable to remain financially solvent the mine was sold to George Westinghouse. Combined with a fire that destroyed much of the town in 1910 and the mine's closure in 1920, West Fairlee's economy suffered immensely. Today the town is largely a bedroom community.