Bishop Auckland is situated at the confluence of the River Wear with its tributary the River Gaunless. The area has long been settled and the route of the Roman Road Dere street runs through the town. In the 10th century Bishop Auckland is mentioned as land given to the Duke of Northumberland. For much of the middle ages the town's fortunes were tied to those of the Bishops of Durham and the English army assembled here before the Battle of Neville Cross in the 14th century.

The nearby village of Escomb has a complete Anglo-Saxon Church built in the 7th century with much of the stone used coming form the old Roman fort at Binchester.