Native Americans Canisteo existed as a community prior to European settlement, but there are different versions of who the inhabitants were and what the settlement consisted of. In the seventeenth and eighteenth centuries Canisteo was in a remote area, between territories of the Seneca and Delaware Indians, "a sort of No Man's Land". There are references to a "Kanestio castle", but differing accounts of what it was, or even what was meant by "castle". One modern writer calls it "mysterious", noting that "facts about [it] are few and difficult to come by."
European settlers Colonial village of outlaws According to William Stuart, "The history of Kanestio Castle constitutes the genesis of Steuben County".). There is no further written reference to Kanestio for 72 years. In 1762 two Dutch traders, British subjects, were killed by "a brace of outlaws from the Castle," Depot Street (renamed Railroad Street while the trolley ran down it) was built to connect the depot to the Canisteo House hotel. A large community, with businesses and shops, and other hotels, sprang up. A J. H. Stewart owned, at 23 Main St. (later East Main St.) a store selling pianos, organs, and
sheet music. An
American LaFrance fire engine was purchased in 1881. The Canisteo Water Works was built in 1887; the bandstand in the park in 1888. In the late 19th century Canisteo was a
temperance community. This was seen as progressive. The same clipping reveals that in 1925 there was a potato club in Canisteo, with a membership of 32 boys and the support of the Erie Railroad and "the state school of agriculture at Alfred". In 1892, 20
arc lights were installed for street illumination. A business directory of 1893 reports that: Canisteo "has a bank, weekly newspaper, four churches, well-equipped fire department, three hotels, and a first-class academy. Very few villages of its size have the industries equal to this place. The principal ones are the manufacturing of doors, sash and blinds, boots and shoes, leather, fence wire, incandescent lamps, hubs and spokes, washing machines, etc." In 1898 Canisteo got gas from Hornell for heating, after an earlier experiment in generating it in Canisteo.
20th century Canisteo got telephone service about 1902. It got dial service about 1950; the original building, on Fifth St., is still (2015) in use. Numbers were four digits, beginning with 2- or 4-, and the only pay phone in town, in the school, with 8-. However, it was an isolated island until the commercial center of Hornell got dial service in 1963. To call Hornell, one dialed 3- for a Hornell operator. This is probably a reason why Hornell's exchange, 324, begins with a 3-. The only other dialable location was the hamlet of
Cameron, whose exchange was accessed by dialing 5-, perhaps reflected in Cameron's exchange (607) 695-. Presidential candidate
William Jennings Bryan spoke in Canisteo in 1924. To create parking for downtown merchants, in the 1950s The Green, Canisteo's central park, between East Main, Greenwood, South Main, and Maple Streets, was sacrificed. It had had an old-fashioned, huge drinking fountain; older photos show a small bandstand. ==Businesses and industries==