Bethlehem, located in the "hill country" of Judah, may be the same as the Biblical Ephrath, which means "fertile", as there is a reference to it in the Book of Micah as Bethlehem Ephratah.  It is also known as Beth-Lehem Judah, and "a city of David".

It is first mentioned in the Tanakh and the Bible as the place where the Abrahamic matriarch Rachel died and was buried "by the wayside" (Gen. 48:7). Rachel's Tomb, the traditional grave site, stands at the entrance to Bethlehem. According to the Book of Ruth, the valley to the east is where Ruth of Moab gleaned the fields and returned to town with Naomi.

Bethlehem is the traditional birthplace of David, the second king of Israel, and the place where he was anointed king by Samuel. It was from the well of Bethlehem that three of his warriors brought him water when he was hiding in the cave of Adullam.

 
Source: http://en.wikipedia.org/wiki/Bethlehem