Lumberland in its current form began to blossom when the Delaware and Hudson Canal opened in 1828.

The canal helped transport anthracite coal from the mines of northeastern Pennsylvania to the burgeoning markets of major cities.

When the canal was phased out due to the advent of railroads on the Pennsylvania side of the Delaware, its bed was converted into New York State Route 97 in the 1930s.

[3] The southwestern town line, delineated by the Delaware River, is the border of Pennsylvania.

The terrain is largely mountainous and wooded, with the majority of residents settling close to or on main roads, such as New York State Route 97 (Upper Delaware Scenic Byway).

The Mongaup River runs from Rio Reservoir southward into the Delaware at the Orange County line.

Camp Ramah in Glen Spey was located in Lumberland, 2 miles (3.2 km) from the Delaware River.

Lumberland firefighters burned the rest of the camp down in 1982 as a training exercise, and to ensure the safety and integrity of the townspeople around them.

[8] It was also the subject of the song "Darlings of Lumberland" on the 2013 album Nanobots by the alternative rock group They Might Be Giants.