Canastota is a village located inside the Town of Lenox in Madison County, New York, United States. The population was 4,556 at the 2020 census. The village was incorporated in 1835, but was reorganized in 1870. Located along the banks of the Erie Canal, which was completed through the Mohawk River valley by 1825, Canastota was a vibrant trading and commercial town during the mid-nineteenth century for a wide agricultural area and an important stop between the cities of Rome and Syracuse.