Elizabeth Villiers was born to Colonel Sir Edward Villiers of Richmond, Surrey, and Frances Howard, herself the youngest daughter of Theophilus Howard, 2nd Earl of Suffolk and Elizabeth Hume. In 1660, Charles II's brother James married the commoner Anne Hyde, who was already pregnant at the time. Elizabeth's mother, Lady Villiers, was awarded the position of governess to James and Anne's children. Although Anne would have four daughters and four sons, only Mary born in 1662 and Anne, born in 1665, survived to adulthood. Lady Villiers used her position to secure for her children both place and influence in the future Queen Mary II's household. Elizabeth's sisters Anne and Katherine were among the maids of honour who accompanied Lady Mary to the Hague, to marry and serve as Princess of Orange; meanwhile, Elizabeth's brother Edward, later created 1st Earl of Jersey, was Master of the Horse. Elizabeth is reputed to have become William's mistress in 1680. In 1685, Mary's father James II exploited rumours of William's infidelity in an attempt to cause a split between his daughter and the prince. Mary II died on 28 December 1694, and within a year or so, William ended his relationship with Elizabeth Villiers, motivated, it is said, by his wife's expressed wishes before her death. In 1694, two men had fought a duel possibly over the affections of Elizabeth Villiers. John Law, then still a penniless young man, killed Edward "Beau" Wilson on 9 April 1694. Wilson had challenged Law, although Law may have provoked Wilson on the instigation of Villiers, due to a conflict she had with Wilson regarding money and attempted blackmail. Law was tried and initially found guilty of murder and sentenced to death. His sentence was commuted to a fine, upon the ground that the offence only amounted to manslaughter. Wilson's brother appealed and had Law imprisoned, but he managed to escape to Amsterdam. In 1695, William settled a large part of the confiscated Irish estates of James II, which had become the property of Mary II, his late wife, on Elizabeth. Parliament revoked this grant in 1700. On 25 November 1695, Elizabeth was married to her cousin, Lord George Hamilton, the fifth son of the 3rd Duke of Hamilton. A few weeks later, on 3 January, he was honoured with the titles Earl of Orkney, Viscount of Kirkwall, and Baron Dechmont. Elizabeth, now the Countess of Orkney, served her husband's interests with great skill, and the marriage proved a happy one. Later in 1696 she founded Midleton College, a grammar school in County Cork, Ireland. Lady Orkney retained a degree of social importance in the Hanoverian era, and was hostess to George I and George II at her estate at Cliveden, Buckinghamshire. She died in London on 19 April 1733.
