The census-designated place of Hatfield consists of the town center and surrounding areas.

Hatfield was founded in 1660 on land granted to General Daniel Dennison and Governor William Bradford.

Enraged, they held a vote on whether Hatfield would still remain territory of Hadley, or secede into its own town.

Many believed this was a good decision as during that time, travel was not easy, and it was very unusual for the already large Hadley, which had already claimed many of its surrounding towns, to have a spot on the west side of the river.

As a center for agriculture, the region produced cattle, sheep, corn, and tobacco.

On October 16, 1675, a substantial part of the town was destroyed in King Philip's War, and surviving settlers sought refuge in Springfield.

On September 19, 1677, another raid occurred, killing thirteen and resulting in seventeen hostages being taken to Canada.

[2] During the American Revolution, Hatfield was an important source of supplies and men for the rebels.

[3] The first Thomas Hastings, aside from serving as physician to Hatfield and surrounding communities, was also the town's first schoolteacher.

Another notable resident was Rebecca Dickinson (1738–1812), a never-married gownmaker whose surviving diary, preserved in the collections of the Pocumtuck Valley Memorial Association in Deerfield, has served as the basis for scholarship in early American women's history.