Waterbury is located in Washington County, northwest of Montpelier on Highway 2. This village and neighboring Waterbury Center, a few miles to the north, are separated by Interstate 89. Both are located on the banks of the Winooski River in the Green Mountains.
Waterbury was chartered in 1763 under a grant from King George III.
Waterbury is a commercial, government and tourism hub ringed by farmland and ski resorts. Local manufacturers include specialty foods, high-tech products and professional services.