The village was incorporated in 1825. The Unadilla Valley Railroad had its northern terminus at Bridgewater. An extensive tannery was last run by the Hiteman Leather Co. in the neighboring town of West Winfield (Herkimer County) and more recently was a superfund cleanup site, also in West Winfield.
On March 18, 2014, voters approved a referendum by a vote of 40 to 8 to dissolve the village on December 31, 2014. As of January 1, 2015, the Town of Bridgewater will assume responsibility for the area of the former village.