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Initially called Port Forchu, Yarmouth was first laid out in 1759 and incorporated in 1890. Through the 19th century it was a major shipbuilding centre, at one point making more ships per capita than any other port in the world. When steamships started to take over that sector of the transportation industry, the town declined.
Tourism is now a major boost to the local economy. Two major ferry routes land in Yarmouth. The Cat travels from Bar Harbour, Maine to Yarmouth and The Scotia Prince travels from Portland, Maine to Yarmouth.
According to the 2001 Statistics Canada census:
| Population: | 7,561 (-0.1% from 1996) |
| Land area: | 10.56 km˛ |
| Population density: | 716.1 people/km˛ |
| Median age: | 38.8 (males: 37.3, females: 40.2) |
| Total private dwellings: | 3,353 |
| Median household income: | $25,652 |