The city of Watervliet is located on the west bank of the Hudson River. The area was purchased by Patroon Killian Van Rensselaer in 1630. The flat, fertile land attracted early settlers. Its name is derived from the Dutch word for plain and "waters" which refers to the annual flood that takes place in the area. The town was home to the Erie Canal Weighlock building, which operated from 1850 to 1910.
The population of Watervliet City has been on the decline for the past several years. Its waterfront population, however, has increased slightly. It has a high concentration of college-educated people. The population of Watervliet and Albany County is highly educated, with a third having a bachelor's degree or higher. In 2000, more than 15% of Watervliet households were higher-educated compared to 9.6% in 1990.
According to the U.S. Census of Population and Housing, the city has a relatively young population. Its median age is 35.8 years, but many residents are under the age of 18. Twenty-seven percent of the population is under the age of 18 and eight percent are between the ages of 18 and 24. Twenty-six percent are between the ages of 25 and 44 and twenty-six percent is over 65. The city has a male-to-female ratio of 47:52.
Hudson Shores Park is a popular destination for passive recreation along the shoreline. It is home to a pavilion, restrooms, and a farmers' market during the summer of 2004. The Mohawk Hudson Bike Hike Trail includes a section that runs off-road, along Broadway. The Watervliet Arsenal also owns a portion of the narrow steep shoreline across from the military base.