Established in 1895 as a mill town by the Millar Brothers it operated until 1905 when the main timber reserves were cut out. After lobbying by a small group of residents remaining after the mill closures the town was purchased by the WA Government several years later.

Fishing, farming, dairying, market gardening and orchards were at various times important local industries over the next century.

From 1923/4 a scheme to introduce new settlers saw many immigrants from interstate and overseas arrive in the district. There were fifteen Group Settlements formed to clear and farm the land.

In the late 1920's the original Millars rail line was rebuilt from the Hay River west to the town. The line new line was also extended to Nornalup where the Frankland River barred the way. It was envisioned that the line would ultimately continue to Pemberton and thus link Albany to Bunbury and then Perth.

Today the town is the centre of thriving tourism and viticultural industries. It has also become a 'Tree change' town for many.