Binnaway is a small town located on the Castlereagh River in central western New South Wales near the larger centre of Coonabarabran, which is about 35 kilometres to the north.

Following local government amalgamation, the town is now located in the Warrumbungle Shire Council area which is headquartered at Coonabarabran.

[6] In February 1876 John McWhirter of Spring Vale, Binnaway, was granted a "Wine, Cider and Perry Licence".

[9] In March 1887 Binnaway was described as a settlement on the Castlereagh River at the "centre of a most fertile country, where grass, feed, and water abound".

The population was considered to be "rather scattered", but the township "boasts of a store, post-office, accommodation house, and a most prolific orchard, the property of Mr. M'Whirter".

Within three miles of the township there were two ways to reach Binnaway: "one is through a black sticky bog of considerable depth; the other, down and up dangerous, precipitous tracks".

In 1923 a cross-country line from Dubbo to Werris Creek via Binnaway established the township as an important railway junction.

Other sports active in Binnaway are cricket, fishing, golf, pony riding, squash, tennis and swimming.