Following the extension of the Northern Railroad of New Jersey into the community in the mid-19th century, rapid growth ensued. Because town government was no longer seen as an effective way to deal with the community's needs, village incorporation was discussed. Fearing higher taxes, those in what would have become the northern part of Nyack village formed their own municipal corporation first, named Upper Nyack. Nyack village was incorporated, although without this northern portion. Residents in the southern part of Nyack village, however, soon became dissatisfied with the notion of paying taxes that more heavily benefited the rest of the village. After succeeding in dissolving Nyack's corporation, the southern portion of the former village incorporated as the village of South Nyack. The area between Upper Nyack and South Nyack was reincorporated thereafter, again as Nyack.