Originally called the Northwest District of Rutland, it was first settled in 1720. The town was incorporated on June 17, 1774, as Hutchinson after Thomas Hutchinson, colonial governor of Massachusetts. But on November 7, 1776, it was renamed Barre /ˈbæri/ in honor of Isaac Barré, an Irish-born MP who was a champion of American Independence. Starting in the 1800s, the Boston, Barre and Gardner Railroad provided rail service to the town.

According to the United States Census Bureau, the town has a total area of 44.6 square miles (116 km²), of which 44.3 square miles (115 km²) is land and 0.3 square miles (0.78 km²), or 0.63%, is water. Barre is drained by the Ware River.

Barre is bordered by Hubbardston to the northeast, Rutland and Oakham to the southeast, New Braintree to the south, Hardwick to the southwest, Petersham to the northwest, and a small portion of Phillipston to the north.

As of the census of 2000, there are 5,113 people, 1,889 households, and 1,377 families residing in the town. The population density is 115.3 people per square mile (44.5/km²). There are 1,988 housing units at an average density of 44.8 per square mile (17.3/km²). The racial makeup of the town is 97.63% White, 0.51% Black or African American, 0.10% Native American, 0.33% Asian, 0.29% from other races, and 1.13% from two or more races. 0.80% of the population are Hispanic or Latino of any race.

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