On March 2, 1921 - the Village of Colonie was incorporated. The first Board of Trustees meeting was held four weeks later at the Colonie Village schoolhouse at 8:00 p.m, Wednesday, March 30, 1921, with the Mayor, Charles H. Collins, presiding over the Board of Trustees. That night the Village government borrowed $500 for the purpose of defraying expenses of the incorporation, created the office of Police Justice, set a tax rate of $3.00 per $1,000 assessed valuation, established the first Village budget at $1285, and the Village was in business. The Village of Colonie was little more than twin ribbons of buildings on either side of Central Avenue, stretching from the traffic light on Wolf Road to the traffic light on the western side of the Village.

During the 1930's the Village continued to grow with a variety of ordinances being passed to keep abreast of the times and to insure a the Village would be "A Place to be Proud of."

In August 1940 the Village Board met with the Town of Colonie to discuss the purchase of water from the Latham Water District. It was agreed that the Village would use the main line on Wolf Road to furnish water to the Village residents. The Board offered and adopted a resolution to issue $75,000 in bonds for the water system. Under the strong leadership of Mayor Russell Goulty, who served during the 1940's, the Village continued to expend. Bus service between Albany and Schenectady started, Lincoln Avenue was paved, a zoning commission was authorized to protect the Village from undesirable buildings and the 1949 budget was $18,316.

An interesting quirk in teh 1960 election occurred. On May 23, 1960, due to a tie vote in the elections of the Trustees between Edward Mahoney and William Cook, the Appellate Division of the Supreme Court ruled that the choosing of the trustees would be done by lots. The Clerk-Treasurer produced a deck of cards. Bill Cook drew the jack of diamonds and Ed Mahoney drew the eight of diamonds. Thus, at the flip of a card and the luck of the draw, Bill Cook became a trustee, launching him into his political career. Bill went on to become Mayor and served in that post until he retired.