Tebay is a village and civil parish in Cumbria, England, within the historic borders of Westmorland. It lies in the upper Lune Valley, at the head of the Lune Gorge. The parish had a population of 728 in the 2001 census, increasing to 776 at the Census 2011. Old Tebay lies to the north of Tebay at grid reference NY618052. Historically a sheep farming area, the arrival of the railway led to increased prosperity.