[22] Matawan was part of the Bayshore Regional Strategic Plan, an effort by nine municipalities in northern Monmouth County to reinvigorate the area's economy by emphasizing the traditional downtowns, dense residential neighborhoods, maritime history, and the natural beauty of the Raritan Bayshore coastline.

[23] Matawan is a part of the New Jersey Transit Village Initiative, a type of residential-focused transit-oriented development focused around the Aberdeen-Matawan train station.

The name may derive from a Lenape language word meaning "where two rivers come together"[25][26] or it may originate from the Southern Unami Matawonge, "bad riverbank" or "bad hill", a possible reference to bluffs along Raritan Bay which were subject to erosion and collapse prior to the construction of a seawall in the 1970s.

The town consisted with a church and a few houses around where southern Main Street and Freneau Avenue are.

As docks were built along Matawan Creek, which led to the area being called Middletown Point, which helped increase trade and commerce in the town.

By the mid 18th century, the town became the main point of water-bound export and entry for Monmouth County.

Some of Monmouth County's wealthiest merchants and tradesmen made their homes along Main Street during this time, many of which remain today.

The mansion is the site where the first New Jersey Company of the Continental Army formed, as John Burrowes Jr. trained local militia in his front yard.

Local Patriots used whaleboats stored in Lake Matawan to attack British ships in the Raritan Bay.

In response, British General Cortlandt Skinner, leading his Loyalist "Skinner's Greens", attacked Matawan with the (successful) intention of burning down the warehouses and mills owned by Burrowes and to capture Burrowes Jr. 200 Greens made their way from Sandy Hook, and greatly outnumbered the Matawan Patriots.

[29] Nearby, a house on Ravine Drive was owned by Samuel Forman, a wealthy merchant and Continental Army colonel and business partner with John Burrowes Sr. Forman had three sons, all of which became officers in the Continental Army, with the oldest Johnathan becoming a general.

In the 1830s, with the invention of the steamboat, Matawan grew and prospered, as it allowed for goods to be more accessible to the New York regional market.

In the 1840s Washington, Monroe, Franklin, Part of Jackson, Little, North, South, and Mill Streets were opened along with Rabbit Lane and Steamboat Alley.

[31] Between 1830 and 1860, lumber mills, shipping warehouses, brickyards, and a ceramic industry which focused on pottery, stoneware, and tile were established.

The Matawan Train Station (later renamed Aberdeen-Matawan when the new station building was built on the Aberdeen side) was established in 1875, which helped sustain the town's prominence as a transportation center as Matawan Creek began silting, which led to a decline in ship commerce.

Today, there is a shark mural located in Matawan Creek visible off High Street.

[35] In 1901, the most disastrous fire in Matawan history destroyed six buildings in the most major part of the business district.

In August 1988, Rose Hill Cemetery, which held many famous locals dating back to 1802, was restored.

Unincorporated communities, localities and place names located partially or completely within the borough include Freneau and Oak Shades.

[48][49] Matawan was ranked by BusinessWeek magazine at #12 in the nation on their list of "The 50 Best Places to Raise Your Kids" in November 2007.

The largest event, Matawan Day, takes place annually in October on Main Street, consisting of stands and booths hosted by numerous local businesses, organizations, and artisans; music, a DJ, and live performers; a beer and wine garden; food vendors and trucks; food eating contests; and numerous activities for kids.

[53][54] Between June and October, Matawan hosts a farmers' market every Friday in front of the municipal building.

Matawan hosts an event for most holidays, including New Jersey's shortest St. Patricks Day Parade, an annual Easter egg hunt, an Arbor Day tree planting celebration, a Memorial Day parade, an annual 9/11 memorial service, Halloween home decorating contest and ghost tours, Thanksgiving turkey trots, and annual Christmas tree lighting and home decorating contest.

The mayor can veto ordinances subject to an override by a two-thirds majority vote of the council.

[61][62][63] As of 2024[update], the mayor of Matawan is Democrat Joseph Altomonte, whose term of office ends December 31, 2027.

[3][64][65][66][67] In July 2019, Brian Livesey was appointed to fill the seat expiring in December 2021 that become vacant following the death of David Vergaretti the previous month; Livesey will serve on an interim basis until the November 2019 general election, when voters will select a candidate to serve the balance of the term of office.

[71][72][73] For the 119th United States Congress, New Jersey's 6th congressional district is represented by Frank Pallone (D, Long Branch).

[100] Matawan is part of the Matawan-Aberdeen Regional School District (MARSD), which also serves students from the neighboring community of Aberdeen Township.

Seats on the district's nine-member board of education are allocated based on the population of the constituent municipalities, with three assigned to Matawan.

[121] Commuter rail service is available on NJ Transit's North Jersey Coast Line, which attracts riders from all over western Monmouth County and provides service to New York City's Penn Station, either directly or via Secaucus Junction.