The Town of Delmar was founded in October of 1859 with the extension of the Delaware Railroad to the southern boundary of Delaware. The Mason-Dixon Line was responsible for the founding of this unique bi-state town because the Charter of the Delaware Railroad Company permitted only the building of a railroad within the State of Delaware and the charter of the corresponding railroad company in Maryland permitted only the laying of railroad track within the State of Maryland. Thus, in 1859, the two respective railroads met and the Town of Delmar was born. The name of Delmar was derived for this railroad center from the states whose line it straddles - DELaware and MARyland.
Delmar straddles the Delaware and Maryland borders in southwest Delaware and is two incorporated towns: Delmar, Delaware, governed by a Mayor and four council members is located in Sussex County and Delmar, Maryland, governed by a Mayor and four commissioners, is located in Wicomico County. The Towns share a central administration, police department, public works department, and sewer/water facilities that are jointly owned and operated.