The Blue Mountains is a town in Grey County, southwestern Ontario, Canada, located where the Beaver River flows into Nottawasaga Bay…The Blue Mountains is a town in Grey County, southwestern Ontario, Canada, located where the Beaver River flows into Nottawasaga Bay. It is named for the Blue Mountain, and hence the economy of the town is centred on tourism, particularly on the Blue Mountain ski resort and the private Georgian Peaks, Osler, Craigleith and Alpine Ski Clubs.