It is located 30 miles (50 km) from the main town and port of Oban, connected by the villages of Kilchrenan and Taynuilt.

A hamlet since the 18th century, the village was developed in its current form by the Forestry Commission in 1952 to facilitate timber operations in the surrounding Inverliever forest.

This was labour-intensive and horses were used to extract timber from the forest; it is possible to get a glimpse of this history by visiting the "old stables" which contain material from this epoch.

Changes in forestry methods reduced local employment in the industry and the village population declined through the latter half of the 20th century.

The area is now a mix of holiday lets and private primary and second homes (Scottish Assessors Valuation Roll listed 32 self catering properties and 34 residential in July 2020).

Dalavich Oakwood is a Site of Special Scientific Interest (SSSI) due to its significance as one of the few remaining examples of upland oak woodland along the slopes of Loch Awe.