It is 16 km (9.9 mi) from Pokataroo which was the nearest railway town prior to closure of the rail service there.

The Yuwaalayaay language region includes the landscape within the local government boundaries of the Shire of Balonne, including the town of Dirranbandi as well as the border town of Goodooga extending to Walgett and the Narran Lakes in New South Wales.

In 1860 William Earl settled near the Collarenebri crossing and established "The Squatters Arms" to capitalise on the increasing traffic through the area.

Earl is credited with having established present day Collarenebri, with a prominent street and aged housing carrying his name.

There is a well maintained Aboriginal cemetery just outside the town which is unique to the area, with graves covered in crushed and melted glass and decorated with items that represent that person.

Volunteers run Collarenebri's live, local radio station YAAMA-FM 95.9 specialising in indigenous programming.

Industries in the area include cotton and wheat farming, sheep and beef cattle breeding.