The first settlement occurred around 1754 near Seward village. During the American Revolution, much of the town was destroyed due to conflict between loyalist and revolutionary factions. The town was formed in 1840 from part of the Town of Sharon.
As of the census of 2000, there were 1,637 people, 588 households, and 449 families residing in the town. The population density was. There were 683 housing units at an average density of 18.8 per square mile. The racial makeup of the town was 97.50% White, 0.31% African American, 0.18% Native American, 0.06% Pacific Islander, 0.73% from other races, and 1.22% from two or more races. Hispanic or Latino of any race were 2.75% of the population. There were 588 households out of which 40.0% had children under the age of 18 living with them, 62.1% were married couplesliving together, 8.8% had a female householder with no husband present, and 23.6% were non-families. 19.7% of all households were made up of individuals and 9.2% had someone living alone who was 65 years of age or older. The average household size was 2.78 and the average family size was 3.16. In the town, the population was spread out with 29.6% under the age of 18, 5.9% from 18 to 24, 26.7% from 25 to 44, 24.6% from 45 to 64, and 13.3% who were 65 years of age or older. The median age was 38 years. For every 100 females, there were 102.6 males. For every 100 females age 18 and over, there were 101.4 males. The median income for a household in the town was $40,438, and the median income for a family was $44,813. Males had a median income of $31,827 versus $24,076 for females. The per capita income for the town was $18,227. About 5.9% of families and 8.8% of the population were below the poverty line, including 11.4% of those under age 18 and 3.5% of those age 65 or over.
Communities and locations in Seward
Clove - A hamlet in the southeast part of the town on County Road 63. It was once called "The Clove," a corruption of the Dutch "Klauver Kloof," meaning "clover valley."
Dorloo - A hamlet in the west part of the town on NY-165, west of Seward village.
Gardnersville - A hamlet east of Seward village, located on NY-10 and named after Dow Gardner, an early settler.
Hyndsville - A hamlet on NY-10 in the southeast part of the town named after a settler family.
Janesville - A hamlet on NY-10 in the southeast part of the town.
Lawyersville - A hamlet at the east town line on NY-145, named after an early family.
Seward - The hamlet of Seward is in the north part of the town on NY-165.
Webers Corners - A hamlet by the west town line on NY-165.
Zeh Corners - A hamlet in the northeast part of the town on Count Road 30.