The village originally grew up around the grain mills which harnessed the water power of the River Mulkear.

That, in turn, was superseded by the building of the Limerick Southern Ring Road which crossed the river 1 km (0.62 mi) upstream at Ballyclough.

Opened in March 1972 by the AKZO Group to manufacture steelcord, it achieved notoriety when its Dutch managing director Tiede Herrema was kidnapped by IRA Volunteers Eddie Gallagher and Marion Coyle in October 1975 and freed four weeks later following a protracted siege in Monasterevin, County Kildare.

[citation needed] Annacotty is the birthplace of the Limerick inter-county hurler Jackie Power and a statue of him stands on the main street.

[citation needed] Annacotty railway station opened on 8 August 1858, but finally closed on 9 September 1963.