Situated at the outlet of Lake Massawippi, North Hatley was first inhabited by the St-Francis Indians, the Iroquois and Abenakis who hunted, fished and held ceremonies in the area. In 1792, Ebenezer Hovey, a captain of militia from Connecticut, and Henry Cull, petitioned the Crown for a grant of land.

Hovey became the first white man to see Lake Massawippi, in 1793.

After spending a winter clearing land and building a log cabin, he returned to Connecticut for his family and other settlers. In 1803, Cull and Hovey along with Ephraïm Wadleigh and a company of associates were granted Hatley Township. Several of these pioneers, who helped begin the settlement of North Hatley, are buried in an old, historic cemetery nearby. The village was incorporated in 1897, though settlement began in the early 1800s.

Around 1900, North Hatley became a popular summer resort for families from the United States, many of whose attractive homes still overlook the lake