Niles is a town in Cayuga County, New York, United States. The population was 1,194 at the 2010 census. Niles lies in the eastern part of the county, southeast of Auburn. Niles was in the Central New York Military Tract, land reserved for veterans. The area that would become the town was first settled circa 1792. The town of Niles was created in 18…Niles is a town in Cayuga County, New York, United States. The population was 1,194 at the 2010 census. Niles lies in the eastern part of the county, southeast of Auburn. Niles was in the Central New York Military Tract, land reserved for veterans. The area that would become the town was first settled circa 1792. The town of Niles was created in 1833 by division of the town of Sempronius.