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The town was first settled around 1715 after being purchased directly from local natives. Part of the early town was called Vroomansland after Adam Vrooman, the landowner. However, other settlers of German extraction, desiring the same land, fomented trouble with the natives.
Fulton was established from part of the Town of Middleburgh in 1828.
The Shafer Site was listed on the National Register of Historic Places in 1980.
According to the United States Census Bureau, the town has a total area of 65.0 square miles (168 km2), all of it land.
The Schoharie Creek flows through the town. Panther Creek flows eastward through the south part of Fulton to Schoharie Creek.
New York State Route 30 is a north-south highway in Fulton.
As of the census of 2000, there were 1,495 people, 499 households, and 353 families residing in the town. The population density was 23.0 people per square mile (8.9/kmΒ²). There were 805 housing units at an average density of 12.4 per square mile (4.8/kmΒ²). The racial makeup of the town was 89.77% White, 8.16% African American, 0.40% Native American, 0.07% Asian, 1.00% from other races, and 0.60% from two or more races. Hispanic or Latino of any race were 5.22% of the population.
There were 499 households out of which 29.5% had children under the age of 18 living with them, 57.1% were married couples living together, 8.0% had a female householder with no husband present, and 29.1% were non-families. 22.0% 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 2.52 and the average family size was 2.89.
In the town the population was spread out with 20.1% under the age of 18, 12.4% from 18 to 24, 30.6% from 25 to 44, 24.7% from 45 to 64, and 12.2% who were 65 years of age or older. The median age was 37 years. For every 100 females there were 130.7 males. For every 100 females age 18 and over, there were 138.3 males.
The median income for a household in the town was $35,144, and the median income for a family was $39,167. Males had a median income of $30,625 versus $24,911 for females. The per capita income for the town was $13,565. About 14.2% of families and 18.2% of the population were below the poverty line, including 23.3% of those under age 18 and 15.9% of those age 65 or over.
There was a considerable controversy about the possibility of wind turbines coming to the area. The current Supervisor of the town of Fulton is popular Democrat Phil Skowfoe. Skowfoe, who is so popular that the Republican Party in a Republican County did not field an opponent in the next to last election, in the last election (2011) he had two opponents a Republican and a Conservative both of whom he defeated. He supports the wind turbines but they are no longer an issue because the town was found to have no suitable locations. A recent poll of one-third of the citizenry showed that 60% supported the idea.