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The blockhouse and stockade called Fort Ingoldsby protected the river landing at the present location of Stillwater in 1709. Like the towns around it, seventeenth- and eighteenth-century Stillwater was located on the main route from Albany to the northern frontier, and all the north-south trade and travelers passed through. Stillwater was organized as a town in 1788. The name Stillwater refers to the long expanse of deep and apparently placid water on the Hudson at this point.

Once thriving with industry, nineteenth-century Stillwater was home to pulp and paper mills, board mills, textile, knitting, and hosiery mills. The Newland brothers, Rial and Henry, founded Saratoga Knitting Mills to produce underwear, socks and stockings. The mill opened in the 1870s and continued operation into the late twentieth century. The Newland brothers' brick mansions - mirror images of one another, stand side-by-side along Rt. 4 opposite the Blockhouse.

The mill era ended by the mid-twentieth century. Stillwater has transformed itself into a bedroom community for the Capital District. The town is actively seeking economic development in the hi-tech and nano-tech industries. However, Stillwater, as the location of the Battles of Saratoga, maintains a strong connection to its history. The Stillwater Historical Society has developed a self-guided walking tour of the center of Stillwater village, highlighting the historical points of interest along the way.