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, NY in 1833. The town was named after Lancaster, MA but the reason for applying this name is not known. Lancaster, however, was originally called Cayuga Creek. Later it incorporated and renamed itself to become what we now know as Lancaster.

In 1857, part of the town was taken to form the Town of Elma. Beginning in early 1990s the town entered a period of rapid growth. In 2003, the town and village police departments merged. Additions to the middle school and the William Street School 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 expanded twice in 2000 adding a field house and again in 2003 as the school opened up a new wing.

Some of the biggest events the town has to offer are the Fourth of July Parade, the Taste of Lancaster, and the Lancaster/Depew football game held in October. The game dates back to 1919 and was rated one of the top 10 rivalries in the US in a USA Today article.

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