The town of Bethlehem was named, according to several local historians, for Bethlehem Methodist Church, which was established in 1796 at the suggestion of Judson L. Moore, a well-known gospel songwriter and publisher who lived near the church. The street names in the  town were all taken from the story of the birth of Jesus.

The Bethlehem City Hall building houses the city library — the Bethlehem Book Deposit is an outreach service of the Piedmont Regional Library System — and the community center, which is available for rent. Business owners can obtain business licenses through city hall and new residents can request garbage services, which are provided free by the city.