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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
 HCrp8ja5G1DpOqAN1tOyBZJsn3DR5rA12in1WgAbPOiHu0ZFXMODf23iBBnTmLDn
 bv86LYL5RRq3lY32SU/NDg==

<SEC-DOCUMENT>0001005477-08-003986.txt : 20080605
<SEC-HEADER>0001005477-08-003986.hdr.sgml : 20080605
<ACCEPTANCE-DATETIME>20080605102640
ACCESSION NUMBER:		0001005477-08-003986
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20080603
FILED AS OF DATE:		20080605
DATE AS OF CHANGE:		20080605

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ALLIANCE FINANCIAL CORP /NY/
		CENTRAL INDEX KEY:			0000796317
		STANDARD INDUSTRIAL CLASSIFICATION:	NATIONAL COMMERCIAL BANKS [6021]
		IRS NUMBER:				161276885
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		120 MADISON STREET
		STREET 2:		18TH FLOOR
		CITY:			SYRACUSE
		STATE:			NY
		ZIP:			13202
		BUSINESS PHONE:		315-475-6703

	MAIL ADDRESS:	
		STREET 1:		120 MADISON STREET
		STREET 2:		18TH FLOOR
		CITY:			SYRACUSE
		STATE:			NY
		ZIP:			13202

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CORTLAND FIRST FINANCIAL CORP
		DATE OF NAME CHANGE:	19920703

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			DEW DONALD H
		CENTRAL INDEX KEY:			0001242534

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-15366
		FILM NUMBER:		08882136

	BUSINESS ADDRESS:	
		STREET 1:		520 SAYLES ST
		CITY:			ONEIDA
		STATE:			NY
		ZIP:			13421
		BUSINESS PHONE:		3156979972
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar123.xml
<DESCRIPTION>FORM 4
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2008-06-03</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000796317</issuerCik>
        <issuerName>ALLIANCE FINANCIAL CORP /NY/</issuerName>
        <issuerTradingSymbol>ALNC</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001242534</rptOwnerCik>
            <rptOwnerName>DEW DONALD H</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>544 FLORENCE AVE</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>ONEIDA</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>13421</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Stock Unit</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <footnoteId id="F1"/>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2008-06-03</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>91.264</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>25.125</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <footnoteId id="F1"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>91.264</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>460.787</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Each Stock Unit is equal to one share of Alliance Financial Corporation stock.  Stock Units are payable in Common Stock upon the reporting person's termination of service pursuant to the Alliance Financial Corporation Stock-Based Deferral Plan.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Judy A. Schultz as Power of Attorney</signatureName>
        <signatureDate>2008-06-05</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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