A dam, Loch Athlone, was biuilt on the Jordan River. This is a leisure resort.The Wolhuterskop Nature Reserve lies on the outskirts of the town on the way to Fouriesburg. Bethlehem is home to the OFM Radio Station Classic Cycle Race and the National Hot Air Balloon championships.
Bethlehem was founded on the farm Pretoriuskloof in 1860. The town was proclaimed in 1884, and became a municipality in 1902. The river running through the place was called Jordan River by FP Naude, one of the original owners of the site. He also gave the name Bethlehem to the town. The railway between Bloemfontein and Harrismith reaxched the town in 1905.