The Town of South Hero, located in Grand Isle County in northwestern Vermont, lies on the southern half of South Hero Island in Lake Champlain. The area which now encompasses South Hero, Grand Isle, and North Hero was given to Ethan and Ira Allen on October 27, 1779 as a reward for their services to the state. The islands were originally named Two Hero’s Island but by 1788 they came to be called North Hero and South Hero.

The first settlers, Ebenezer Allen and Alexander Gordon, came by boat in 1783. Early economic development centered around agricultural products and the harvesting of timber. Today, the lands of South Hero are used primarily for agriculture, dairying, and apple orchards. The island is a very attractive place for resorts and thus attracts many summer tourists.

The Town of South Hero shared South Hero Island with the Town of Grand Isle, which occupies the northern half of the island. Surrounding towns on the shores of Lake Champlain include Colchester and Milton, Vermont to the east; and Plattsburgh and Peru, New York to the west.