The history of Oyster Bay begins long before the arrival of Europeans, when the land was inhabited by Native Americans of the Lenape tribe, specifically the Matinecock group. The area received its modern name around 1615 from Dutch navigators who were impressed by the incredible abundance of oysters in the local waters.
In the mid-17th century, this territory became a border zone between the Dutch colony of New Amsterdam and the English settlements of New England, leading to frequent disputes. Although the Dutch made the first land purchase from the Native Americans in 1639, and an initial English attempt to settle in 1640 was thwarted by Dutch authorities, a permanent English settlement was eventually established. In 1653, a group of colonists led by Peter Wright, Samuel Mayo, and the Reverend William Leverich purchased a tract of land from the Matinecock tribe, founding the modern town. The settlement gained official status in 1667 with the creation of the Township of Oyster Bay within the English colony of New York.
- Geography: Situated on the shores of a protected harbor on Long Island's North Shore, Oyster Bay was an ideal location for seafaring, fishing, and trade.
- Trade and Resources: Oysters were the primary economic driver from the beginning. Its unique position on the border between Dutch and English territories, despite the conflicts, encouraged trade and, in some instances, smuggling.
- Political Context: The transfer of the entire colony to English control in 1664 resolved territorial disputes and fostered the stable development of Oyster Bay under the British colonial system.
The town's early economy was inextricably linked to the sea. Beyond its famous oyster industry, shipbuilding and fishing flourished here. Culturally, Oyster Bay became an important refuge for Quakers fleeing persecution in other colonies. During the American Revolutionary War, the town was occupied by British forces, and Raynham Hall served as a headquarters for a British unit. Local legend suggests that it was here that part of Benedict Arnold's plot to surrender the fort at West Point was first uncovered.