The Village of Waterford was incorporated in 1794, taking its name from the fact that there was a fording place in the river between the village and Peebles Island. River trade was initiated in the region in 1799 and Waterford, which was the head of sloop navigation on the Hudson, became a bustling port.

Due to the presence of water for both power and transportation, the Hudson-Mohawk region became one of the birthplaces of the American Industrial Revolution. To move goods and travelers to the west and north of Waterford it was necessary to overcome the barriers created by the Cohoes Falls in the Mohawk River and the rapids of the Hudson.

The completion of the Erie and Champlain Canals in the 1820s fostered prosperity in the 19th and early 20th centuries. Construction of the Waterford Flight of Locks in 1915 as part of the New York State Barge Canal System assured Waterford’s role in canal transport through the first half of the 20th century. The Waterford Canal Harbor project will bring prosperity to the community in the 21st century.