Montpelier is a city in Bear Lake County, Idaho, United States. The population was 2,597 at the 2010 census, down from 2,785 in 2000. The city is the largest community in the Bear Lake Valley, a farming region north of Bear Lake in southeastern Idaho along the Utah border. It was settled in 1863 by Mormon pioneers on the route of the Oregon Trail. Nearby to the east is the border with Wyoming.