The village was originally settled in the 18th Century and was known as Allen's Town. Like most country villages in colonial days, Allentown developed around its mill which was built by Nathan Allen in the early 1700's. As the farms in the area grew, so did the need for blacksmith shops, wheelwrights, carriage makers, chair makers, shoemakers, seamstresses and tailors. By the end of the 18th Century more than 24 commercial enterprises existed within the village boundaries. The Borough of Allentown was and is today a center for travel across New Jersey. Main Street was a main route of travel from the Amboy's Port to Burlington during the 18th Century.

Allentown has produced from its residents, six United State Congressman, a New Jersey Governor, a governor of the Washington Territory and the first Chief Justice of New Jersey, who was also a signer of the U.S. Constitution.

The Borough of Allentown continues to be a strong regional village providing employment opportunities, a variety of housing choices, is centrally located and is able to provide public services. Today, Allentown strives to maintain it's past history while attempting to offer the best in unique community living.