It is situated on flat country in the Weddin Shire, just beyond where the last slopes of the Great Dividing Range meet the plains of the Central West.

[1] Recent decline in population is evidenced by the number of electors casting ballots at Caragabal Public School; 180 in 1998; 151 in 2004, and 127 in 2007, with a slight increase to 136 in 2011.

[3][4] Permanent white settlement in this part of Wiradjuri country commenced in 1835, when colonial surgeon Andrew Gibson took up extensive grazing holdings ('runs') in the area at; Bogo Bogolong (45,000 ha), Wheogo (13,680ha) and Bland (17,920ha).

[5] During the remainder of the 19th century the land was used for sheep and cattle grazing, with Marsden on the Bland Creek to the west, and Bimbi to the south-east emerging as the nearest villages.

The opening of the line from Stockinbingal in 1916 provided a much needed delivery point for the growing number of "cocky" selectors who had stacked 124,000 bags of wheat at the siding in anticipation.

However Caragabal remains an important grain producing (wheat, canola, oats and barley) area with storage facilities dominating the townscape.