The archbishops of York had a palace at Otley, and major estates here from an early date.
Lawton 1842 says 'The archbishop of York holds the manor of Otley of the King, in capite, as pertaining to his barony of Sherburne.'
There has been an excavation of the site of the archbishop's palace, which lay north of the church and near the river Wharfe. The buildings found included a simple rectangular chapel (51 x 22 ft internally) with an apsed end and walls of 3 ft thickness. This became the undercroft of a chapel in the second half of the 12thc; a well-preserved capital was found, it had three scallops on each of two faces, which a deep arris outlining the curves of the shields. The excavators compared the capital to work at Kirkstall Abbey (Le Patourel and Wood 1973, pl. 2b).