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Huntington settlers first visited the Amityville area in 1653 due to its location to a source of salt hay for use as animal fodder. Chief Wyandanch granted the first deed to land in Amityville in 1658. The area was originally called Huntington West Neck South (it is on the Great South Bay and Suffolk County, New York border in the southwest corner of what once called Huntington South but is now the Town of Babylon. According to village lore, the name was changed in 1846 when residents were working to establish its new post office. The meeting turned into bedlam and one participant was to exclaim, "What this meeting needs is some amity". Another version says the name was first suggested by mill owner Samuel Ireland to name the town for his boat, the Amity.
The place name is strictly speaking an incidental name, marking an amicable agreement on the choice of a place name. The village was formally incorporated on March 3, 1894. In the early 1900s Amityville was a popular tourist destination with large hotels on the bay and large homes. Annie Oakley was said to be a frequent guest of vaudevillian Fred Stone. Will Rogers had a home across Clocks Boulevard from Stone. Gangster Al Capone also had a house in the community. Amityville has been twinning with Le Bourget, France since 1979.