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The area that is now Schenectady was originally the land of the Mohawk tribe of the Iroquois Nation. When Dutch settlers arrived in the Hudson Valley in the middle of the 17th century, the Mohawk called the settlement at Fort Orange "Schau-naugh-ta-da", meaning "over the pine plains." Eventually, this word entered the lexicon of the Dutch settlers, but the meaning was reversed, and the name referred to the bend in the Mohawk River where the city lies today.

Contrary to popular belief, the areas consisting of Schenectady and nearby Niskayuna were not actually inhabited by the Mohawk -- at most there were "lean-to's" scattered throughout the area, enabling weary travellers and hunting parties the opportunity to stop and rest before heading to the settlements near present-day Fonda. If there were indeed settlements in the immediate area of Schenectady and Niskayuna, they most likely belonged to the Mohican, who by 1634 had been forced east of the Hudson River.

Schenectady was first settled in 1661 when the area was part of the Dutch colony of New Netherland. Settlement was led by Arent Van Curler of Nijkerk in the Netherlands, who was granted letters patent to Schenectady in 1684.

On February 8, 1690, the town was attacked and overrun by forces of France and their Indian allies, who burned the town and killed all but 60 of the inhabitants. This event is known as The Schenectady Massacre

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