The specific year when Parksville was settled remains uncertain, but Lemuel Martin established himself there in 1800. Shortly after, in the early 1800s, William Parks relocated to the area, where he and his son Elijah built mills and enhanced Parksville, gaining greater recognition than Martin, which upset him. He wished to name the place Martinville, but the residents opted for Parks, resulting in the name Parksville. In 1880, the New York, Ontario, and Western Railroad reached Parksville, operating trains until the line was completely abandoned on March 29, 1957. The hamlet was known for having the only grade intersection on the New York State Route 17 expressway east of Hancock. This intersection, designated as Exit 98, was replaced in 2012 when a new bypass was constructed south of the previous route. Exit 98 on NY 17 is now a diamond interchange leading to Parksville's business area. While the town is not fully abandoned, many of its former businesses stand abandoned.