The studio was opened in 1969 by Albert Grossman, manager of Bob Dylan, The Band, Janis Joplin and Todd Rundgren. Grossman served as the director until his death in 1986, after which time directorship was assumed by his wife, Sally Grossman.
The studio did a great deal of demo work, and very little commercial advertising work, catering to its star-powered pedigree. The two-hour drive from New York City, a "retreat" for some artists, combined with residences owned by Albert Grossman, amplified this value.
The Replacements had recording sessions at Bearsville for their Don't Tell a Soul album but the recordings were not used for the album. They were eventually released as part of the Dead Man's Pop box set in 2019. During the Bearsville recording session, the band trashed the recording studio and living quarters and played a game they called "Dodge knife" that was like dodgeball but using knives.
- "Bearsville Studios, Speare Road, Bearsville, New York". jerrygarciasbrokendownpalaces.blogspot.com. Blogger. Retrieved 30 July 2014.
- "THE REPLACEMENTS BATTLE THEIR PRODUCER IN STORMY FIRST ATTEMPT TO RECORD 'DON'T TELL A SOUL'". dangerousminds.net. 2019-09-26. Retrieved January 30, 2020.