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The most likely origin of the West- in Westbury is simply that the town is near the western edge of the county of Wiltshire, the bounds of which have been much the same since the Anglo-Saxon period. The -bury part of the name is a form of borough, which has cognates in many languages, such as the German -burg and the Greek -pyrgos. It carries the idea of a hill or fortified town. In Wiltshire, -bury often indicates an Iron Age or Bronze Age fortified hill fort, and such a site is to be found immediately above the Westbury White Horse.

Westbury is located 18 miles (29 km) south east of the city of Bath and about 5 miles (7.5 km) south of Trowbridge. Other nearby towns and cities include Bristol, Frome, Salisbury, Swindon and Warminster. Nearby villages include Bratton, Chapmanslade, Dilton Marsh, Edington, North Bradley, Rudge, Standerwick, Semington, West Ashton and Upton Scudamore.

In the past, Westbury was sometimes known as Westbury-under-the-Plain to distinguish it from other towns of the same name. Westbury is nestled under the north-western bluffs of Salisbury Plain, and it is there that the town's most famous feature can be seen: the Westbury White Horse. It is sometimes claimed locally that the White Horse was first cut into the chalk face as long ago as the year 878, to commemorate the victory of King Alfred the Great over the Danes in the Battle of Eðandun (probably, but not certainly, at the nearby village of Edington). However, scholars believe this to be an invention of the late 18th century, and no evidence has yet been found for the existence of the Westbury White Horse before the 1720s. The form of the current White Horse dates from 1778, when it was restored. In the 1950s it was decided that the horse would be more easily maintained if it were set in concrete and painted white. In recent years, there has been a multitude of calls to clean or paint the "old grey mare" and such a renovation began in May 2006.

The horse's original form may have been quite different from the horse seen today. One 18th century engraving shows the horse facing to the right, but in its current form it faces to the left.

Westbury centres on its historic marketplace, with the churchyard of All Saints' Church (14th century) behind it. All Saints' boasts the third heaviest ring of bells in the world, an Erasmus Bible and a 16th century clock with no face constructed by a local blacksmith.

The town has been home to the Army Officer Selection Board, located at Leighton House, since 1949.

In the early part of September 1877 there was found on Bremeridge Farm, in the parish of Westbury, Wilts, belonging to Charles Paul Phipps, esq. of Chalcot House, a hoard of 32 gold coins. They were found during repairs and improvements of the homestead, about a foot and a half below the surface, in the courtyard, piled, one above another, without any appearance of a purse or box.