The Utica and Schenectady Railroad was chartered April 29, 1833; as the railroad paralleled the Erie Canal it was prohibited from carrying freight. Revenue service began August 2, 1836, extending the line of the Albany and Schenectady Railroad west from Schenectady along the north side of the Mohawk River, opposite the Erie Canal, to Utica. On May 7, 1844 the railroad was authorized to carry freight with some restrictions, and on May 12, 1847 the ban was fully dropped, but the company still had to pay the equivalent in canal tolls to the state.
In 1853, the company was consolidated, along with a number of other small New York state regionals, to form the New York Central Railroad. This consolidation was spearheaded by Albany industrialist Erastus Corning.