The Village of Clayton is on the northern edge of the town and is north of Watertown.
Clayton is the home of the Antique Boat Museum and Clayton Opera House. The village is a year-round community, but is a summer resort, offering galleries, boutiques and quality services to summer visitors.
The community was formerly called "French Creek" and "Cornelia." By 1853, the population of the village was 426.
Clayton incorporated as a village, by vote of its citizens, in 1872.
The arrival of the railroad in 1873 marked a major turning point in the local tourist industry.