Schenectady was founded in 1661 by Arent Van Curler. In 1690, the settlement was destroyed in a Native American attack, but the village grew again and prospered as a stopping place for traders and settlers traveling west on the Mohawk River. Growth was particularly spurred by the opening of the Erie Canal in the 1820's and the building of railroads in the 1830's. Locomotive manufacturing, begun in 1848, was long an important industry. In 1892, the General Electric Company was established there, but its presence waned in the late 20th century. Several other companies manufacture electrical equipment and the production of chemicals is important too.

Schenectady is the seat of Union College, which was founded in 1795. The former home and laboratory of American electrical engineer Charles P. Steinmetz have been converted into a science museum. Notable among Schenectady's historic buildings are the homes in the old stockade area, which date from the early 1700's.

There are several hotels and restaurants in Schenectady. The city is on the Mohawk River and the Barge Canal in central New York, 25 km northwest from Albany and 520 km northeast from Washington D.C.