The name Karalee is an Ugarapul word meaning 'pretty hill beside the water'.

[10] The school includes a special education program.

[8] Karalee State School has three houses: Nowra, Kalara and Summerville.

[11] Karalee has one shopping village with a Woolworths, a Coles, a newsagent and other stores.

The Ipswich City Council operates a fortnightly mobile library service which visits the shopping centre.