The "Mouth of the Ford of the Birches", Ballybay is a small town set among low-lying hills on the shores of Lough Major, head-water of the Dromore River, a tributary of the River Erne. The town grew as a linen town in the mid 18th century due to the local Jackson family’s involvement in the linen industry. The site off the original settliment is to be found in the lower main street area.