The village was named by a Mr. Arnold, a settler from Maryland, USA circa 1817. The area was first called Maryland, and Maryland Hill, but as early as 1825 it began to be referred to as New Maryland.

Among the historical anecdotes relating to New Maryland's history, one particular event stands out: New Maryland was the venue for the last fatal duel in the Province. The famous Street-Wetmore duel, in which George Ludlow Wetmore was killed, took place on the Segee farm on October 2, 1821.

The Village of New Maryland was officially incorporated on June 1st, 1991