Located near the island's geographical center, the neighborhood was founded in 1680 in Karle's Neck, so it was later named Karle's Neck Village. By the early 19th century, the community included a dock (on Richmond Creek) and several freshwater springs, leading to its being renamed first Springville, then later New Springville.

New Springville remained largely rural until 1964, when the E. J. Korvette department store chain opened an outlet on the site of a former chicken farm. This was followed, in 1973, by the opening of the Staten Island Mall on the grounds of what had been a little-used airport, which changed the character of the neighborhood completely; soon adjacent land was converted to business (mostly retail) use as well. Since then, New Springville has emerged as a commercial and administrative core, rivaling St. George. New Springville has also become a major public transportation hub, second in size on Staten Island only to that of the St. George ferry terminal; six city bus routes serve the area, including one going to Brooklyn, with the terminal at the Staten Island Mall on the Marsh Avenue side (the S79). The Yukon Bus Depot was opened in the early 1980s and can accommodate 380 buses.

In addition to its explosive development as a business district, New Springville also experienced massive residential growth during the latter third of the 20th century, with thousands of single-family homes being built there, along with apartment and condominium complexes near the Staten Island Mall. In recent years, a new educational complex has been under construction near these apartments and condominiums. Completed is P.S. 58 (Space Shuttle Columbia School), an elementary school, and new intermediate and high schools have been completed.