The town was established in 1825 from parts of the towns of DeKalb and Oswegatchie. The town name was proposed to be "Stilwell” after prominent resident Smith Stilwell, but he declined on the grounds that”some one among the proprietors, might be willing to make the town a liberal present, for the privilege of giving it their name.”

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Thus, a correspondence was opened with landowner Frederic de Peyster, whose name was ultimately chosen for the new town. (From Wikipedia, the free encyclopedia)