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In 1848, a doctor from Quebec City bought the land and opened a spa. The town was founded in 1851 by Thomas Keefer, who built the first sawmill there. Baie-Saint-Paul is located on Route 138 (the Transcanadienne) at its intersection with Route 368 which leads to Sainte-Anne de Beaupré and Percé. It is also served by Quebec Routes 132 and 389 as well as local roads including Chemin du Phare Ouest (West Lighthouse Road), Chemin du Phare Est (East Lighthouse Road) and Rue Principale(Main Street).