Old Albany is the remnant of an 1850s settlement by a group from Albany, New York. Albany continued to grow after the Civil War. They had a post office, hotel, boarding house, livery stable, blacksmith shop, grocery store, creamery, sawmill, and a millinery store.

In 1870, officials of the St. Joseph Denver City Railroad decided to take the easier route that was two miles south. There was only one thing to do, move the settlement to the rail head. this was done en masse, people and buildings.

School continued in the Albany school building until 1962, when the students were furnished transportation to the Sabetha schools.

In 1965, the school and grounds were acquired by the Albany Historical Society who began restoring the building. First floor displays consist of original desks, blackboards, teachers' desks and a piano. The Historical Society has continued gathering vintage buildings for Old Albany to make it representative of the original settlement. Two of the original buildings still stand, and a post office, log cabin, frame schoolhouse, blacksmith shop, sawmill, and print shop have been donated to add to the complex.

Each year the Albany Historical Society, in cooperation with other community organizations, give visitors the chance to see history in action during "Old Albany Days." Volunteers demonstrate threshing as well as other agricultural and community living history. This event is the weekend following Labor Day and is a major fund raiser for the museum.