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Covert was in the Central New York Military Tract. The town was first settled around 1797.
In 1904 Interlaken (previously called "Farmer") set itself apart by becoming an incorporated village
According to the United States Census Bureau, the town has a total area of 37.6 square miles (97.5 km²), of which, 31.5 square miles (81.6 km²) of it is land and 6.1 square miles (15.9 km²) of it (16.31%) is water.
The south town line borders Schuyler County, New York, to the southwest and Tompkins County to the southeast and the east town line is defined by Cayuga Lake, one of the Finger Lakes. The town of Lodi is to the west and the town of Ovid is to the north.
As of the census of 2000, there were 2,227 people, 892 households, and 620 families residing in the town. The population density was 70.7 people per square mile (27.3/km²). There were 1,183 housing units at an average density of 37.6/sq mi (14.5/km²). The racial makeup of the town was 98.25% White, 0.49% African American, 0.18% Native American, 0.18% Asian, 0.27% from other races, and 0.63% from two or more races. Hispanic or Latino of any race were 0.99% of the population.
There were 892 households out of which 32.4% had children under the age of 18 living with them, 55.8% were married couples living together, 9.8% had a female householder with no husband present, and 30.4% were non-families. 25.3% of all households were made up of individuals and 12.0% had someone living alone who was 65 years of age or older. The average household size was 2.45 and the average family size was 2.92.
In the town the population was spread out with 25.4% under the age of 18, 5.0% from 18 to 24, 24.6% from 25 to 44, 28.4% from 45 to 64, and 16.6% who were 65 years of age or older. The median age was 42 years. For every 100 females there were 94.8 males. For every 100 females age 18 and over, there were 91.5 males.
The median income for a household in the town was $38,068, and the median income for a family was $45,759. Males had a median income of $31,328 versus $27,955 for females. The per capita income for the town was $19,757. About 7.2% of families and 10.1% of the population were below the poverty line, including 12.5% of those under age 18 and 5.2% of those age 65 or over.