The Town of Liberty area is credited with providing 303 men who fought in the Revolution. Liberty was carved originally from the then large township of Lumberland and was itself at this time so large that it included the present Towns of Callicoon and Fremont. The Town today covers 85 square miles.

When the first white settlers came to this area, known as the Blue Mountain country, they settled to the Northwest of the present village at the existing Revonah Lake, formerly known as Broadhead Pond. The early settlers came here from Connecticut and some of the oldest remains left in the Town are the laid up stones in the outlet of Revonah Lake which were probably placed there in 1797 for the purpose of building the first sawmill in the area.

The Village of Liberty, incorporated on September 17, 1870, is by far the largest of the Town's communities, being located at the crossroads of the Quickway (Route 17) and State Highway Route 52.

Liberty can boast of its tanneries, of the old Liberty Normal Institute, established in 1847, its famous Coaching Day Parades, and its hotels of the 1900 era. The Liberty House was the greatest and was the site of many Lincoln Dinners and reunions of the Grand Army of the Republic.

Of the smaller hamlets, Parksville is the only one to maintain its original name. Even before the formation of the Town of Liberty there were people in this area. The Martins and the Halls were early settlers, arriving in 1804. At a later date the Parks family came to the area and proved to be extremely active and productive and through their efforts came the name Parksville, otherwise it more than likely would have been known as "Martinsville."