Lye was formerly a village historically situated within the boundaries of the county of Worcestershire. It used to be famous for the manufacture of nails, anvils, vices, chain, crucibles and firebricks. Lye Waste, adjacent to the original village of Lye, was an area of uncultivated common land but it was settled by people who, by building houses including a fireplace within 24 hours by using mud and clay as the main building materials, acquired freehold rights as a result of the passing of the Inclosure Acts [sic] from 1604 onwards, and it became thickly built upon.
Bentley's History, Guide and Classified Directory of Stourbridge of 1841, describes the district of Lye and Lye Waste as "almost one continued series of humble dwellings and work-shops interspersed at intervals with others of a more respectable appearance".[2] Nailmaking was the main occupation but anvils, chains, vices, bricks and tobacco pipes were also made. The writer observes that the "poor artizan in many of the trades appears to get a very small remuneration for his labour, and to make an improvident use of much of even the little he gets."[2]
Lye was formerly a township and chapelry in the parish of Old Swinford,[3] in 1866 Lye became a separate civil parish,[4] on 1 April 1974 the parish was abolished.[5] In 1951 the parish had a population of 4769.[6]
The village of Careless Green, now part of Lye but once a separate village immediately to the south-east, was noted for insurance clubs called Stewpony societies and the Stewpony Allotment Society which tried to improve conditions for the labouring classes.[3][7]