A few settlers, actually tenants, made the future town their home before the American Revolution, but the major influx occurred after 1785, mainly from New England. The town was established from part of the town of Norway in 1796. From 1802 to 1901, the Fairfield Academy offered secondary and higher education at its campus in the hamlet of Fairfield. From 1812 until 1841, the Fairfield Medical College, a division of the academy, trained medical practitioners, including Marcus Whitman.
As of the census of 2000, there were 1,607 people, 561 households, and 430 families residing in the town. The population density was 39.1 people per square mile. There were 611 housing units at an average density of 14.9 per square mile. The racial makeup of the town was 98.44% White, 0.37% African American, 0.19% Native American, and 1.00% from two or more races. Hispanic or Latino of any race were 0.25% of the population. There were 561 households, out of which 35.8% had children under the age of 18 living with them, 64.2% were married couples living together, 7.8% had a female householder with no husband present, and 23.2% were non-families. 19.1% of all households were made up of individuals, and 7.7% had someone living alone who was 65 years of age or older. The average household size was 2.78 and the average family size was 3.17. In the town, the population was spread out, with 26.3% under the age of 18, 7.0% from 18 to 24, 27.1% from 25 to 44, 25.8% from 45 to 64, and 13.8% who were 65 years of age or older. The median age was 38 years. For every 100 females, there were 103.2 males. For every 100 females age 18 and over, there were 96.0 males. The median income for a household in the town was $40,104, and the median income for a family was $45,069. Males had a median income of $31,992 versus $21,944 for females. The per capita income for the town was $15,603. About 9.0% of families and 11.6% of the population were below the poverty line, including 13.7% of those under age 18 and 13.0% of those age 65 or over.
Communities and locations in Fairfield
Barto Hill – An elevation located east of Fairfield.
Countryman – A location near the west town line, southwest of Fairfield village.
Dillenbeck Corners – A location in the southeast part of the town on County Road 70.
Eatonville – A hamlet at the south town line on NY-169.
Goodell Corners – A location in the southeast part of the town near the town line, located on NY-170 at NY-170A.
Middleville – Part of the village of Middleville is within the west town line at the intersection of NY-29 and NY-169.
Old City – A hamlet at the northwest corner of the town on County Road 7.
Top Notch – An elevation located south of Goodell Corners. Partially in the Town of Little Falls.
Welch Corners – A location in the northwest corner of the town, south of Old City and located on NY-29. The Old City Road Stone Arch Bridge was added to the National Register of Historic Places in 2001.