In the post-Revolutionary period, central and western New York were settled by many migrants from New England.

With development of the Erie Canal in the early 19th century, the movement of people expanded towards the Midwest as trade and commerce increased.

Oneida's development began to pick up as new trade routes were opened, especially in the period initially following construction of the Oneida Lake canal and feeder and an associated railroad stop, tying it into major trade networks of the day.

It produced silk and canned goods until the manufacturing of flatware picked up in the later years of the community's existence.

This led to the foundation in 1880 of Oneida Limited, a company that outlasted the community and became one of America's most important flatware producers in the 20th century.

[citation needed] The company is still headquartered in the city, although all US manufacturing operations have now ceased and all Oneida products are imported.

Oneida has a number of properties on the National Register of Historic Places, including the Main-Broad-Grove Streets Historic District, Cottage Lawn, DeFerriere House, Mount Hope Reservoir, Oneida Armory, Oneida Community Mansion House, and United States Post Office.

New York State Route 5 passes through the city south of its center, leading east into neighboring Oneida Castle and continuing 22 miles (35 km) to Utica; and west into neighboring Wampsville and 27 miles (43 km) to Syracuse.

Interstate 90, the New York State Thruway, passes through the northern portion of Oneida but does not have a direct exit to the city: the nearest exits are for Verona to the east and Canastota to the west.