[3] It was created after local councils called for the renaming of the B55 road route.

Thereafter it heads north to Kingston Road, where it turns east to Loxton, its north-eastern terminus.

In 2006, the local governments in the area, including Loxton Waikerie Council and Karoonda East Murray Council, called for the Loxton to Murray Bridge section of the B55 road route to be named Karoonda Highway, after the major town along the route.

[4][5][6] The B55 route actually extended past Loxton to Berri, which the councils initially didn't realise.

[3] In 2014, Karoonda Highway was rated as one of the worst roads in the states by South Australian motorists.