The area that became the town and village of Hamilton was originally inhabited by members of the Iroquois League, and some of the territory is still considered to be sacred by the Oneida Indian Nation.

The town of Hamilton was founded near what is now Earlville, and gradually expanded into a wide area populated by farms and settlements.

[5] The family of the brothers Samuel and Elisha Payne had been prominent in Connecticut since before the Revolutionary War, in which they had served, possibly at Fort Stanwix,[6] near what is now Rome, New York.

[7] At the close of the Revolutionary War, the pair moved from Lebanon, Connecticut, to the town of Whitestone (now Whitesboro, New York), a few miles from Utica.

[8] In 1794, Samuel Payne moved southwest from Whitestone into the town of Hamilton, where he started a farm on the hill that is today's location of Colgate University.

[11] He and others from Whitestone and Connecticut moved to an unsettled area just north of his brother, and that settlement grew to become today's village of Hamilton.

[18] Serving as the trading center, the settlement naturally prospered when farmers received higher prices.

[18] In addition, the 1808 opening of the Skaneateles Turnpike, which connected the village to western New York, probably contributed to the favorable economic climate.

[17] Early commerce in the village included groceries, blacksmiths, book sellers, furniture and carriage makers, feed stores, quarries and lumber mills.

Agriculture in the surrounding area initially emphasized hops,[23] which gave way after the Civil War to dairy farming.

Northeast of Hamilton is Payne Brook, which starts at Lake Moraine and travels through the village before converging with the Chenango River.

[2] Snowfall is the most notable aspect of the area's climate, which is typical of central Upstate New York in the vicinity of Syracuse.

[36] The mayor exercises the executive function and is assisted by the Village Administrator, the Clerk/Treasurer, and the Director of Utilities and Public Works.

It enacts local laws, adopts the budget, and exercises oversight over the Village departments, boards, commissions and committees.

In addition to the elected officials and professional officers, the governance of the village rests in the hands of about fifty volunteers who serve by appointment on ten boards, commissions, and committees.

The Hamilton Central School, located on a 45-acre (18 ha) site off West Kendrick Avenue, is a K–12 educational facility for the village and surrounding town and the communities of Eaton, Madison, Lebanon, and Brookfield.

[42][43] The Robert Trent Jones, Sr. designed Seven Oaks Golf Course is located on the east side of the village on the college campus.

The Village of Hamilton is also home to award-winning Good Nature Farm Brewery & Tap Room.

[46] A Utica television station travel show broadcast, in 2008, a two-part tour of things to see and do in the village.