Part of the original New Netherland, the first European settlers were the Dutch who settled Kinderhook around 1665, and named this area "Vaaltje", meaning "little falls".

By the early 19th century there were nine cotton mills in Valatje operating on power derived from the famous waterfalls; the village was incorporated in 1856.

With a bustling Main Street, Valatie was considered the center of commerce in northern Columbia County throughout the 19th century.

The United States' first Santa Claus Club was founded in Valatie in 1946 by fifteen village veterans to provide holiday gifts for several critically ill children.

Every Christmas Eve, a Santa travels throughout the village, personally visiting every child under age ten.

[citation needed] Valatie is located in the center of the Town of Kinderhook in northern Columbia County.

[3] The village is located at the juncture of Valatie Kill with Kinderhook Creek, a tributary of the Hudson River.