Ocean Grove on the Jersey Shore was founded in 1869 as one of numerous Methodist camp meeting associations springing up across the country for summer religious retreats. Ocean Grove came to have the largest summer population of any of the camp meeting associations, and instead of withering over the years as others did, it prospered.

It wasn't until 1979 that the existence of a religious community with its own laws was declared unconstitutional and Ocean Grove officially became part of Neptune. But it remains a separate community with its own traditions.

The Ocean Grove Historical Society was formed in 1970, and this summer the historical society opened its own museum on Auditorium Square. Philip May, president of the society for eight years, talked about the museum, at 50 Pitman Avenue, and the town.

Q. How did Ocean Grove come into existence?

A.The site was selected because it was between two freshwater lakes, Wesley Lake and Fletcher Lake. They provided drinking water and a place for swimming for women and children and anyone else who did not want to swim in the ocean. The area did not have the mosquitoes that plagued a lot of the other communities, and it was on the railroad line.

The camp meeting association bought the land and sold lots for $250. The blocks coming from the beach tapered in so that every house had a view of the ocean. Other lots were set up for tents for the summer visitors. There were 1,000 tents at one time; now there are about 100. You had everything else from summer cottages to big Victorian houses and large hotels. A lot of those buildings remained over the years, and we are now able to restore them. About half of the town has been restored so far, and the entire community is on the national and state historic registers. The camp meeting association owned the land and still does. Homeowners pay $10.50 a year to lease the land and have 99-year leases.

Q. What other features does the community have?

A. A well was dug in 1869 and a gazebo built over it. The gazebo has become a symbol of the historical society, and we are restoring it, although now there is a water fountain in it instead of a well. The community is centered around the Great Auditorium, built in 1895. It originally had 10,000 seats but now has a little more than 6,000. All of the top entertainers of the day appeared there; seven Presidents visited here, including Teddy Roosevelt.

Q. What were some of the local laws?

A. Until 1979, there were no vehicles allowed to be parked on the street or driven on Sundays, and there were chains across the entrance gates. First it was horse-drawn carriages and then cars that were prohibited. There was no card playing and no swimming on Sunday. When President Grant was scheduled to visit here on a Sunday, people wanted to get special permission for his carriage to be driven to the Great Auditorium, but he said if a President couldn't obey the law, then no one had to, so he walked in.

Q. What do you like best in the museum?

A. One of the original horses from the famous Ocean Grove carousel was donated to us and is in the window of the museum. We have a lot of valuable paperwork from the founding of Ocean Grove, early maps and portraits and photographs from the late 1800's. You can see from the early pictures that much of Ocean Grove looks the same today as it did when it was built. We found 1890's doors and refinished them for the museum entrance. KAREN DeMASTERS

Photo: Philip May, president of the Ocean Grove Historical Society, at its new museum. (Mary DiBiase Blaich for The New York Times)