The village was first settled in 1771. In 1787, Benajah Douglas, grandfather of 1860 presidential candidate Stephen A. Douglas, built the first tavern and hotel at Ballston Spa. It was located near the natural spring.Template:Cn
In 1803, Ballston Spa's Sans Souci Hotel, at the time the largest hotel in the United States, was built by Nicholas Low. Presidents, Vice Presidents, Senators and Governors stayed there, as well as many wealthy private citizens.<ref>Template:Cite web</ref> Ballston Spa was incorporated as a village in 1807.
Buster Red, a Depression era folk singer, wrote in his song "When I Go Out" details about his trip through Pennsylvania and New York. According to the song it was in Ballston Spa that he was ultimately found out for some crime or deception, before moving on to Saratoga.<ref>Template:Cite web</ref>
The village was the model for the village of North Bath, NY, the setting for the 1993 best-selling novel and 1994 movie, Nobody's Fool. The book's author, Richard Russo, is a native of nearby Gloversville. It was also the location of the fictional "Elspeth Hatch" murder trial defended by Clarence Darrow set in 1897 in the book titled The Angel of Darkness by author Caleb Carr.
In 1838 the Ballston Spa National Bank, one of the oldest still functioning American banks, was founded. As of 2022, the Bank has 13 branches.<ref>Template:Cite web</ref>
George West (known as the "Paper Bag King") developed a line of square-bottomed paper bags, which he manufactured by the millions after the American Civil War, and at one time owned almost a dozen paper mills located along the Kayaderosseras Creek.<ref name="lost">Lost Industries of the Kaydeross Valley, Starr, 2007</ref> The village was also home to the Ballston Knitting Company from 1918 to 1994.Template:Citation needed
As the county seat of Saratoga County, county offices, courts, law enforcement, and the jail are major employers.
Ebby Thacher, Bill Wilson's (co-founder of Alcoholics Anonymous) sponsor.
Ira Thomas (1881–1958), Major League Baseball player was born in Ballston Spa
Stephen Trombley, Emmy Award-winning film maker, author and musician, is a 1972 graduate of Ballston Spa High School.
Todd Waring, television and movie actor, 1973 graduate of Ballston Spa High School.
George West acquired ten paper mills situated along the Kayaderosseras Creek from 1862 to 1899 and became the largest manila paper manufacturer in the world. Also was a member of the New York State Assembly and the United States Congress.
There were 2,267 households, out of which 32.4% had children under the age of 18 living with them, 45.9% were married couples living together, 10.8% had a female householder with no husband present, and 38.9% were non-families. 32.1% of all households were made up of individuals, and 11.6% had someone living alone who was 65 years of age or older. The average household size was 2.32 and the average family size was 2.94.
In the village, the population was spread out, with 23.9% under the age of 18, 8.1% from 18 to 24, 32.7% from 25 to 44, 18.7% from 45 to 64, and 16.6% who were 65 years of age or older. The median age was 36 years. For every 100 females, there were 88.2 males. For every 100 females age 18 and over, there were 85.2 males.
The median income for a household in the village was $37,173, and the median income for a family was $49,387. Males had a median income of $36,929 versus $27,281 for females. The per capita income for the village was $20,237. About 7.4% of families and 10.6% of the population were below the poverty line, including 16.8% of those under age 18 and 5.1% of those age 65 or over.
