The village was incorporated on March 15, 1842. At the time, it contained between 900 and 1,000 inhabitants, about 180 dwellings, three churches, the Yates Polytechnic Institute, a large woolen factory, two large water lime factories, one flouring mill, three taverns and ten stores. In 1853, the first bank in the village, the Chittenango Bank, was organized and began business with capital of $110,000, which increased to $150,000 one year later. The bank closed business nearly one decade later, and in December 1863 the First National Bank of Chittenango was organized, occupying the same building erected by the first bank. This bank also closed down in 1883.