In the early 1900s Wilson R. Stearley, Bishop of Newark, held services for the congregation at the Salter's Point Inn (which no longer stands) and in his own Salter's Point home. It is said that he created a communion rail from a well placed oar.

In 1917, when the need for a permanent building was clear, the Chapel was built in the apple orchard of the Houghton family.  Arthur A. Houghton, Jr. deeded the site to St. Aidan's Chapel of Dartmouth, Inc., in 1945, and St. Aidan's joined the Episcopal Diocese of Massachusetts. The rectory, located across the Smith Neck Road from the Chapel, was erected on land given by Daniel M. Beach in the following year.

No one knows why the Chapel was named for the seventh-century Saint Aidan, missionary Bishop of Northumbria, but he was a fine choice. Ancient records praise him for his teachings, his gifts of alms to the poor, his protection of animals and the monastery he established on the Island of Lindisfarne, on England's northeast coast near the Scottish border. He was at home on the sea.
The Chapel is run by a volunteer Standing Committee and Corporation.