Past the junction with CR 4, NY 12E bends back to the northeast, passing more riverside residences and a handful of farms before entering the village of Clayton. In the village, NY 12E becomes known as State Street as it crosses over an inlet from the St. Lawrence River. The bridge over the waterway brings the route into Clayton's downtown portion, where it intersects with NY 12 (James Street). This intersection serves as the northern terminus of NY 12E, as State Street continues northeastward as part of NY 12.