[5] At the 2000 census there were 3,240 people, 1,009 households, and 855 families living in the township.

There were 1,045 housing units at an average density of 86.9 per square mile (33.6/km2).

None of the families and 2.8% of the population were living below the poverty line, including no under eighteens and 23.0% of those over 64.

Wallace Township is in the Downingtown Area School District.

Pennsylvania Route 82 follows North Manor Road along a north-south alignment through the western corner of the township.