On what is thought to have been the site of a disused cloth warehouse, the chapel was built and named Bethel Chapel. Who had it built it not known but it was opened for divine worship by the Rev. W. Norman in the year 1787, and the services were first conducted according to the form of the Church of England although the chapel was Independent. Support was not good at first and the chapel was closed and eventually sold to a Mr Posthumus Bush. The Rev. Thomas Watkins who was living in Bath and married to a wealthy lady from the West Indies then purchased the property from Mr Bush and had the minister's house built. He resided there with his wife and, being more than an ordinary preacher, it is said, a good congregation was sustained and the chapel flourished. During his ministry a gallery was added which has since been removed. Mr Watkins died in 1802 at the early age of 45 and was buried in a vault under the pulpit.
In 1805 his widow married the Rev. Joseph Rawling, a preacher and schoolmaster from Ide, near Exeter, who continued the ministry at Bethel until his death in 1813. Mrs Rawling died in 1816 and was buried under the pulpit, as was the Rev. Joseph Rawling. On her death Mrs Rawling left the chapel and house in trust to Mr Henry Stroud of Turleigh, a convert and friend of her husband, with Mr Howard, also of Turleigh as joint trustee. There is a memorial in the chapel commemorating the death of Mrs Howard and of their son.