Buchan is a rural town, consisting largely of farming land and native vegetation.

It is surrounded by the localities of Black Mountain, Buchan South, Butchers Ridge, Canni Creek, Gelantipy, Gillingall, Glenmore, Murrindal, Suggan Buggan, Timbarra, W-Tree, and Wulgulmerang.

Wheat, oats, barley, maize, hops, arrowroot and beans were grown on the river flats at various times.

Wattle bark stripping was an important industry and small spot mills worked in the surrounding bush.

Following World War 2, two large sawmills and several smaller mills operated in Buchan providing employment.

Fairy Cave was discovered in 1907 by the local caretaker, Frank Moon, and was opened for public inspection in 1908.

In the 1920s camping facilities were developed near the caves to accommodate the number of tourists who visited the area on bus tours and who stayed in the local guesthouses, hotels or at the new campsite.

Residents in the district have experienced a number of environmental hardships over the last decade, including drought, two floods and three major fires.