In the late 1740s, John McKown, originally from Scotland, moved his family to the United States of America from County Londonderry, Ireland.

[1] Though the university is a part of the identity of McKownsville, the relationship has at times been strained regarding the growth of the campus and its impacts on adjacent residential areas.

[2][3] Being along Albany's city line, McKownville has long been a center of suburban development including residential, commercial/office, retail, and educational.

In 1924, residents formed the McKownville Improvement Association to lobby the town to build sidewalks and a create a water district for the neighborhood.

[6] The expansion would have made Crossgates the largest mall in the nation, but due to opposition from Guilderland the plan was dropped and later retooled for Syracuse's Destiny USA.

Albany Mayor Jerry Jennings then refused to allow EMS and fire response from the city to cover Indian Quad and the Recreation and Convocation Center (today the SEFCU Arena), both in Guilderland.

As a hamlet, the boundaries of McKownville are ill-defined, though generally considered to be the Governor Thomas E. Dewey Thruway (Interstate 87) and Fuller Road Alternate (unsigned NY Route 910F) to the west, the town of Bethlehem to the south, and the city of Albany to the east and north.