In 1844, Caledonia was incorporated as a village and later as a town. By 1860, the Grand River Navigation company was bankrupt, and their land was sold to different organizations. Seneca village was failing; many people from Seneca moved to Caledonia. Navigation on the river ended by 1880. A whole new way of transportation arrived around 1883; the Grand Trunk Railway passed through Caledonia. Oneida had become part of Caledonia and the town limits were expanding. By 1960 Caledonia was a bustling town.