By 1708 Bath consisted of twelve houses and about 50 people. Trade in naval stores, furs and tobacco was important, and Bath became the first port of entry into North Carolina. In 1707 a grist mill and the colony's first shipyard were established in the town. A library sent to St. Thomas Parish in 1701 a grist mill and the colony's first shipyard were established in the town. A library sent to St. Thomas Parish in 1701 became the first public library in the colony. The parish also established a free school for Indians and blacks.
The General Assembly met in Bath in 1743, 1744 and 1752. In 1746 the town was considered for capital of the colony. Governors Robert Daniel, Thomas Cary, Charles Eden, and Matthew Rowan made Bath their home for a time, as did Edward Moseley, long time speaker of the assembly. In 1776 a new town, Washington, was formed 15 miles up the Pamlico River. When Beaufort County government moved there in 1785, Bath lost most of its importance and trade. Bath was spared from Union occupation, common in coastal North Carolina, during the Civil War. By the turn of the century, Bath had improved land transportation. Waterborne activities also increased as several large sawmills were operated nearby.
Yet Bath remains a small village. Restoration efforts in Bath have saved the St. Thomas Church, the Palmer-Marsh House, the c. 1790 Van Der Veer House, and the c. 1830 Bonner House. The original town limits are the boundaries of a National Register historic district