[3][4] European settlement of the area began with the establishment of a pastoral run near the junction of the Ahaura and Grey Rivers in 1858.

[5] At one time the town supported six hotels, two butcheries, a bakery, a blacksmith's shop, and a printing office.

[6] Ahaura is described by Statistics New Zealand as a rural settlement and covers 0.39 km2 (0.15 sq mi).

Although some people chose not to answer the census's question about religious affiliation, 43.8% had no religion, and 50.0% were Christian.

[7] Located in the central Grey Valley at an altitude of 80m, Ahaura falls under the Köppen-Geiger climate classification of Cfb (Oceanic), though the nearby Paparoa Range shelters the settlement from moderating seabreezes on summer afternoons, and on winter nights cold air sinks from the Paparoas into the Grey Valley, which results in many more frosts per winter than nearby Greymouth.

The area typically observes lower rainfall totals than coastal locations due to the rain-shadow effect of the Paparoa Range.