Batsto Village was founded in 1766 by ironmaster Charles Reed. Later owners served the needs of the Continental Army during the War for Independence by providing kettles and munitions. During the 19th century, Batsto craftsmen ventured into glassmaking, specializing in window panes for gas lamps. When the state bought the site in the 1950s, it decided to promote it as a historical village. By that time, the 40-acre site suffered from years of neglect. The state of New Jersey restored the gristmill and sawmill, making them operational. Workers repaired the dam and the old Post Office, and constructed a new visitor center. More than 40 buildings have now been restored.
Batsto Village is located in the Wharton State Forest, part of the Pinelands National reserve.