The Village of Unadilla is located in the south part of the town, southwest of Oneonta. The community refers to itself as "The Village Beautiful."
The town was originally the site of an Indian village at the confluence of the Susquehanna and Unadilla Rivers where the Village of Sidney (in Delaware County) is now located. The name Unadilla, which represents one spelling from a number of different interpretations of several Indian dialects, is said to mean "Meeting Place", indicating the place where two rivers meet.
Unadilla was first settled by whites around 1770. The location of the village now called Unadilla was first settled about the same time by a group of Scots-Irish at the junction of the Ouleout Creek and the Susquehanna River. Both villages were destroyed by the Continental Army in October 1778 because they were being used by Loyalists as a base for raiding frontier communities.
Shortly thereafter, Unadilla Village was again settled, and originally called "Wattles Ferry," It grew after it became an important stop for travel west, the Catskill Turnpike crossing the Susquehanna at Wattles Ferry, located in the eastern end of the village. Eventually, the turnpikes were replaced in importance by the Albany and Susquehanna Railroad (later the Delaware and Hudson Railway), while the small community continued to take advantage of this progress and prosper.
Unadilla set itself off from the town by incorporating as a village in 1827, finally incorporated in 1889.
The village itself contains many historical homes, some built before the Civil War in 1860.
Unadilla's Boy Scout Troop #1 was chartered in 1910, and is recognized as the oldest continuously operating troop in the United States.