The Village of Allegany is located along the banks of the Allegheny River in southern Cattaraugus County, New York. Allegany is the most densely settled village in the county. It is the smallest in terms of size, but the second largest village in terms of population.

The Village of Allegany is surrounded by the Town of Allegany, a separate municipality.The Village was founded in 1906 and is the 'downtown' area of the highest density of business and residential areas to the west of the 417 bridge over the tracks. The Village makes up 0.7 square miles with 1,883 people as of the 2000 census.