The Village of Potsdam is in the eastern part of the town and is northeast of Canton, the county seat.

Potsdam was the seventh town erected by an Act of the Legislature passed February 21, 1806, formerly attached to Madrid.

[3] The Market Street Historic District, Bayside Cemetery and Gatehouse Complex, Clarkson Office Building, Clarkson-Knowles Cottage, Nathaniel Parmeter House, Trinity Episcopal Church, and United States Post Office are listed on the National Register of Historic Places.

As of the census of 2010, there were 9,428 people, 2,265 households, and 1,040 families residing in the village.

There were 2,705 housing units at an average density of 616.5 per square mile (238.0/km2).

The racial makeup of the village was 91.60% White, 2.50% Black or African American, 0.36% Native American, 3.88% Asian, 0.01% Pacific Islander, 0.53% from other races, and 1.11% from two or more races.

40.8% of all households were made up of individuals, and 15.6% had someone living alone who was 65 years of age or older.