The European-American settlement in 1798 adopted the Lenape name Lackawaxen, meaning "swift waters," after the river that flows twelve miles through the township.

Their tools, pot shards and bone fragments have been found at Native American rock shelters and camp sites.

The first permanent European settlers in the area were Jonathan Conkling and John Barnes, who built in 1770.

In the Battle of Minisink in 1779, 40-50 European colonial settlers were killed in an engagement with a band of mostly Iroquois and Loyalists led by Colonel Joseph Brant, a Mohawk who commanded forces for the British.

At the same time, the railroad brought tourism to the area and new sources of revenue; the rugged countryside of the upper Delaware Valley became a popular destination for urban tourists.

Stations were built at Lackawaxen, West Colang and Mast Hope, and elaborate resort hotels soon were developed nearby.

From 1905 to 1918, western author Zane Grey lived in Lackawaxen with his wife and growing family.

Listed on the National Register of Historic Places is the Greys' home from 1914 to 1918, now preserved by the NPS as a house museum, part of the Upper Delaware Scenic and Recreational River area.

A scenic area within the Upper Delaware River National Park, Lackawaxen is located about a two-hour drive from New York City.