First settlement began around 1809. The town of Harmony was established in 1816 from a part of the town of Chautauqua. The size of Harmony was reduced when the newer towns of Busti and North Harmony were formed.
According to the United States Census Bureau, the town has a total area of, of which is land and, or 0.35%, is water. New York State Route 474 is a major east-west highway through the north part of the town.
As of the census of 2000, there were 2,339 people, 837 households, and 662 families residing in the town. The population density was 51.4 people per square mile. There were 931 housing units at an average density of 20.5 per square mile. The racial makeup of the town was 97.95% White, 0.38% African American, 0.26% Native American, 0.09% Asian, 0.13% from other races, and 1.20% from two or more races. Hispanic or Latino of any race were 0.47% of the population. There were 837 households, out of which 37.6% had children under the age of 18 living with them, 67.5% were married couplesliving together, 8.6% had a female householder with no husband present, and 20.9% were non-families. 16.8% of all households were made up of individuals, and 8.0% had someone living alone who was 65 years of age or older. The average household size was 2.79 and the average family size was 3.15. In the town, the population was spread out, with 28.7% under the age of 18, 7.6% from 18 to 24, 27.9% from 25 to 44, 24.2% from 45 to 64, and 11.7% who were 65 years of age or older. The median age was 37 years. For every 100 females, there were 98.9 males. For every 100 females age 18 and over, there were 100.0 males. The median income for a household in the town was $32,578, and the median income for a family was $39,167. Males had a median income of $31,927 versus $19,122 for females. The per capita income for the town was $15,292. About 8.6% of families and 10.6% of the population were below the poverty line, including 15.7% of those under age 18 and 3.9% of those age 65 or over.
Communities and locations in Harmony
Blockville - A hamlet near the north town line by the junction of County Road 35 and NY-474.
Brokenstraw Creek - A stream which rises on the west side of the town; a tributary of the Allegheny River in Pennsylvania.
Cherry Hill - A hamlet in the southeast corner of the town by the junction of County Roads 12 and 35.
Kings Corners - A location at the west town line, west of Panama village on County Road 10.
Little Brokenstraw Creek - A stream flowing southward through the west side of the town, joining Brokenstraw Creek in Pennsylvania.
Niobe - A location in the southeast part of the town and west of Cherry Hill on County Road 12.
North East Junction - A hamlet in the southeast part of the town
Panama - The village of Panama is in the northwest part of the town on Route 474 and County Roads 10 and 33.
Watts Flats - A hamlet by the eastern town and south of Blockville on County Road 35.
