The present divisions of the town include, Little Britain, Rock Tavern and Vails Gate. The area that now encompasses the town was granted in a patent to Capt. John Evans-1694-1699. He was granted powers and privileges as Lord of the Manor. Capt. Evans had vacated his patent sometime after 1699, and about 1709 the portion of the town nearest the Hudson River was organized under the Precinct of the Highlands (Ulster County). This remained until 1743 as the precinct, which was attached to New Paltz. In 1762, separate precincts were created for the Town of New Windsor and Newburgh.

The name of the town is from Windsor England, with the "new" being prefixed. By whom this was conferred can not be ascertained, but, undoubtedly, is tied to remembrance of the sovereign.