Where is the best place to camp in New York?

The State parks / DEC campgrounds will have a dumping station, water is available at faucets scattered through the campgrounds.
Favorites for us are Watkins Glen and Letchworth SP in the Finger Lakes area.
In the Adirondacks we like Cranberry Lake and Fish Creek / Rollins Pond. Cranberry is just sort of out there, unless you hike or boat there's not a lot in the area. Fish / Rollins are closer to Saranac Lake and Lake Placid.
For a private full hookup cg we like North Pole Resorts in Wilmington, 10 miles or so from Lake Placid.

Here's a similar thread from a little while back, it may be of some help;

http://www.rv.net/forum/index.cfm/fuseaction/thread/tid/26904739/gotomsg/26906214.cfm#26906214

http://www.dec.ny.gov/outdoor/camping.html
http://nysparks.com/parks/

You can start with these, but by no means is this all, there are also many private CG's in the Adirondacks.

I forgot to mention that we enjoy hiking, but mostly would just like to find a nice campsite on the waters edge where we can enjoy the views.

Thanks for all the good suggestions. We were looking for a place to go but now we are trying to decide on which one to go to. We don't mind boon-docking but prefer the state parks with at least a dumping station and potable water. We may bring our 85 lb Lab Retriever so we are always looking for pet friendly sites.

The wife was looking at Lake Meachom today on-line. Anyone ever been there? Let us know how it was.

There is also Cooperstown KOA in Richfield Springs, NY. Small campground, but owners are absolutely the nicest people we have met when camping. Lots to see and do in the area as well. Campground is immaculate.

Ledgeview RV Park in Lake George. Inexpensive, well kept, great owners.

What are you interested in doing?
We personally like Lake George and Lake Placid areas. One of our favorite place to stay is Lake George RV Resort. In Lake Placid we stayed at the North Pole Campground.

Check out Letchworth State Park ....beautiful spot ....you could also go to Niagara Falls from there - not too much further. There's always Lake Placid which is nice and you can visit the Olympic sites. We stay at the KOA when we go there. Lots of beautiful state parks in New York ....I guess it depends more on what types of things you like to do....

Nick's Lake (Old Forge); Golden Beach (Raquette Lake); 7th Lake Campground (Inlet area) - get area for hiking, biking & noating!
All are state campgrounds, so it is dry camping only (no hook-ups)!