The New York State Thruway (Interstate 87) and U.S. Route 9W pass through the western part of the town.

Formed in protest to what was considered political misrule by the authorities of the town of Kingston,[citation needed] the action of the supervisors was soon ratified by the state legislature.

When the boundaries of Ulster were established, it was obvious just how severe the punishment of the town of Kingston had been: the new town had Eddyville with the Delaware and Hudson Canal terminus lock, the land bordering the Hudson with its icehouses and brickyards and all the advantages for trade and travel, the flat farm land of the Saugerties Road and the Brabant with its road leading into the interior.

Finding a centrum or hub around which the township could unite was virtually impossible as it was little more than a collection of hamlets bound together by only a legislative act."

(Burgher manuscript) Although the new town lacked a geographic center, Eddyville was its economic hub.

Named for George Eddy, a mill owner whose family established a cotton mill and a sawmill on the Rondout, Eddyville became a thriving hamlet in large part due to the Delaware and Hudson Canal.

Originally named by the Esopus tribe of the Lenape, the Dutchlater called it "Vlakke Basch".

It became the site of cement works, ice houses and brickyards, and became second only to Eddyville in significance in the newly-formed Town of Ulster.

Bluestone quarrying was the main industry in Ruby, which was known as both Dutch and German settlement in earlier times.

"The township remained primarily rural and agricultural until the post World War II years when so much happened so quickly and Ulster had to move into the 20th century ready or not.

The economy of Ulster, the city of Kingston and neighboring towns changed irreversibly as housing developments sprang up, schools were built and other businesses arrived."