Originally called Riverdale, it is located inland from Golden Bay, 14 kilometres (8.7 mi) southwest of Collingwood.

The chosen name, Bainham, is a portmanteau of the surnames of two of the first European families to settle in the area, Bain and Graham.

[3] In 1906, the population of Bainham was over 100, with the main activities in the area being dairy farming, gold mining in the Quartz Ranges, further up the Aorere River, and timber milling.

He leased part of the building to the Post Office and Telegraph Department to provide postal services, while using the remainder as a store.

[3][6] Bainham is the nearest settlement to the northern end of the Heaphy Track, 14 kilometres (8.7 mi) to the southwest, and is a gateway to the Kahurangi National Park.