The Donnelly River site was first used as a timber mill by the Wheatley family in 1912 to cut cross arms and telegraph poles, but it closed after two years.

The village now comprises a group of over 40 significant buildings, including cottages, a primary school, the previous Workers' Club, a general store and others.

The primary school building is now used to house a historical display, which is curated by the Friends of Donnelly Village and also provides budget accommodation for Munda Biddi riders and Bibbulmun Track walkers.

Cottages in the village originally, mostly built for timber mill workers have been restored and now provide holiday accommodation.

The general store is open seven days a week and offers basic groceries and snack foods that are sought by trail users.

Nearby towns of Bridgetown, Nannup and Manjimup provide essential services within about 30 minutes of picturesque driving.