Somerset was granted to 62 people in a charter in 1762.  It is unknown whether any of these people were ever establilshed in the town.  Somerset as a town/community was born out of need for lumber in the northeast as it sat in prime logging territory and it was located in the Deerfield river valley.  The town sprung up  a couple hundred yards back from the river where loggers would cut timber up river and flume the logs into town where they would be processed and then taken on a wagon ride to bennington. 
Somerset had over 300 people in 1850, it never had a village or any real center of population but it did have a large house like building that acted as general store and housed the post office.  With the advent of commercial logging and trucks and trains it was no longer profitable to slog logs down the river and wagon ferry them into town.   In 1937 the Vermont Legislature disenfranchised Somerset.