The nearby resort town of Waihi Beach, ten kilometres to the east, is often regarded as the westernmost point of the Bay of Plenty region.

The township grew around the mining operations since the discovery of gold in 1878 by prospectors John McCombie and Robert Lee.

Waihi prospered with the mine, by 1908 being the fastest-growing town in the Auckland Province, three times the size of Hamilton.

The 1912 miners' strike led to violence, including the death of unionist Fred Evans in an incident which still causes some resentment in the town.

By the 1960s, traffic volumes for the port of Tauranga had outgrown the capacity of the circuitous line through Waihi and a deviation to the south was built, including the Kaimai Tunnel.

In the 1970s Waihi saw a large influx of hippies in search of environmentally friendly alternative lifestyles settle there and around the Waikino area.

These young counterculture proponents brought with them numerous cottage industries which helped supplement Waihi's economy.

The Nambassa rock and alternative festivals were held around Waihi and Waikino between 1975 and 1982, increasing the population by around 10,000–75,000 for a few days each year and bringing revenue to the town.

Temporary tent cities were established on the Northern end of Waihi on farms up Landlyst Rd at Golden Valley, to accommodate festival goers.

A new underground mine called Favona is in operation near the processing plant to the east of Waihi.

Another 31 homes were also bought once more areas were identified to be at high, medium or low risk of collapse into historical workings adjacent to the pit.

Mine management has received positive responses for its rigorous environmental effects control procedures and its commitment to the local community in terms of consultation and financial assistance.

This has, amongst other things, led to the mine management company, Newmont Waihi Gold, receiving the 'Advanced Sustainable Business Award' from Environment Waikato, the Regional Council of the area.

Until the electrical appliance industry was deregulated in New Zealand in the 1980s, Waihi had a television assembly plant operated first by Akrad then by Philips which employed 400 locally and 1500 nationwide.

OceanaGold currently operates the Favona, Trio and Correnso underground gold and silver mines under the eastern end of the Waihi township.

[19] The Correnso underground mine is the current active operation and is producing approximately 100,000 ounces of gold each year.

[26] The horizontal Cornish pump was used up to 1913 to raise water from a depth of around 400 metres (1,300 ft) via the adjacent No 5 shaft at a rate of over 400,000 litres per hour.

The operation to move the Cornish Pumphouse to a site 300 metres (980 ft) away was started in 2006 with the installation of internal steel bracing and the building of a relocation causeway.

Later in the year, the building, weighing 1,840 tonnes, was moved over the course of three months along teflon-coated concrete beams to its present location, which is easily accessible via a footpath from Seddon Street.

[28] Some internal steel bracing remains installed in the building and it is able to be viewed by the public during daylight hours.