The Town of Sharon is in the northwest corner of the county and is southwest of Amsterdam.
The town was first settled around 1780. It was called "New Dorlach" from a location in Germany known to the early settlers while still in Otsego County.
In 1781 during the American Revolution, a battle, the Battle of Sharon, was fought in the town between small contingents of Colonial forces and Tories.
Sharon was created in 1797 from the Town of Schoharie during the early organization of Schoharie County.
The opening of the Erie Canal in 1825 reduced road traffic on a major east-west turnpike through the town, leading to the decline of several early communities.
Sharon Springs set itself apart from the Town of Sharon in 1871 by incorporating as a village, and absorbed the neighboring community of Rockville during this process.