The current Town Supervisor is Dino Fudoli.
In 1803, the Holland Land Company sold its first plot of land in the future town. The Town of Lancaster was formed from the Town of Clarence, New York in 1833. The town was named after Lancaster, Massachusetts, but the reason for applying this name is not known. Originally called Cayuga Creek, the town later incorporated and obtained the current name.
Lancaster contains the oldest stone structure in Erie County, the Warren Hull House. It was listed on the National Register of Historic Places in 1992. Also located within the town is the Gipple cabin, the oldest wooden structure in Erie County. The cabin is located on private land just south of the northern town line. The Lancaster District School No. 6 was listed on the National Register of Historic Places in 2008.
In 1857, the southern half of the town was taken to form the Town of Elma.
Once known as a small town with a small town atmosphere, Lancaster has, in recent years, evolved into a suburban community. Beginning in early 1990s, the town entered a period of rapid growth, with much development in the southern and eastern parts of the town. The William Street Intermediate school opened in the southern part of town in the mid-1990s and in 2003, the town and village police departments merged. Additions to the middle school and the William Street School to accommodate rising enrollment were finished in 2005.
Lancaster High School is the largest school in both school population and square feet in Erie County. With over 2,000 students, the building was expanded twice. First in 1970 and in 2000, a field house was added. In 2003, the high school opened up a new wing to house natural sciences classrooms.
Some of the town's biggest events are held in the Village of Lancaster. They are the Fourth of July Parade, and the Taste of Lancaster, a restaurant festival and charity fundraiser. The Lancaster/Depew high school football game is held in October. The game dates back to 1919.