[2] The town is named after its local geographical setting, a relative comparison of two tributaries (the other being the neighboring Great Valley) of the Allegheny River.

The town of Little Valley is centrally located in the county, north of the city of Salamanca.

Little Valley was once an important rail station on the Erie Railroad and notable for its cheese and dairy industry.

The location of the railroad resulted in moving the county seat to the village of Little Valley, which was also later connected to Salamanca by a streetcar line.

The towns of Conewango (1823), Napoli (1823), Mansfield (1830), New Albion (1830), and Bucktooth (1855, renamed Salamanca in 1864) were all formed from Little Valley.

County Routes 5 and 14 start in the northwest corner of the town and head toward New Albion and East Otto, respectively.

28.6% of all households were made up of individuals, and 15.7% had someone living alone who was 65 years of age or older.

Attractions and organizations in the town of Little Valley (not counting those in the village) include: