The Ley Community was first established in Oxford in 1971 by two local psychiatrists, Dr Bertram Mandelbrote and Dr Peter Agulnik, who at that time were working with drug and alcohol addicts in treatment at Littlemore Hospital. In 1969, Dr Agulnik had visited Phoenix House in New York and had been impressed at the impact of the Phoenix self-help programme with the emphasis on ex-addicts in treatment helping each other with their recovery.

Initially, the Ley Community was set up on a ward at Littlemore Hospital. Whilst the ward was mostly staffed by nurses, the psychiatrists were able to recruit an ex-Phoenix House graduate, John McCabe, to come to Oxford and take on the mantle as Programme Director. A voluntary Management Committee was set up involving a number of charismatic and influential local people including Harry Turner (who later became Director of Social Services for Oxfordshire) and Ken Thompson, the serving Oxfordshire Chief Probation Officer. In addition, A.G. Palmer took on the role of Hon Treasurer - a crucial appointment for which the Ley Community continues to benefit from today.

It quickly became apparent that working from the hospital was not ideal and, with a generous donation from the Oxford Rotary Club, a house was purchased on the outskirts of Oxford in 1974. Subsequently, the Management Committee were able to purchase a large family home and garden in Yarnton, a village two miles to the west of Oxford City. The Ley Community moved to Yarnton in 1979, and continues to operate from this site.

Over the years, the Ley Community programme has grown and developed. Brian Donnellan followed John McCabe as Director in the late 1970s, to be followed in turn by Paul Toon in 1988. In 1998, Steve Walker was appointed Programme Director, and the Management Committee appointed Paul Goodman as Chief Executive with managerial responsibility for the day to day running of the organisation. All three of the Ley Community Programme Directors who followed John McCabe, have themselves completed the Ley Community programme.

The Ley Community now employs 25 staff working with a Community of up to 64 residents. Half the staff have themselves been through a drug rehabilitation programme, and their personal experience and ability to have been able to overcome their addiction and lead full and fulfilling lives without the need to misuse substances has a powerful impact on current residents. Between 2001-2003, a major redevelopment programme was undertaken at the Ley Community. The Board of Trustees sold off just over an acre of land, and built a new residential block, Agulnik House, from the capital raised from the sale. Palmer House, built in the late 1980s, was then substantially enlarged, and the original 1930s family home known as Sandy Croft was converted into the main administrative centre for the Community. In addition, a great deal of work was undertaken on the grounds including the construction of a multi-sports pitch. The facilities now available at the Ley Community are of a very high standard, and more than meet the requirements set out by the Commission for Social Care Inspection for all registered homes.