The town originates from when gold was discovered close to the present townsite in 1895 by a group of prospectors including W. A. Miller, who took up the lease of the Englishman mine in the same year.

The town was named by Mr Beaumont, who managed the Lady Shenton gold mine.

[3] Kookynie grew at an impressive rate on the back of a gold rush and by 1907 the town had a population of over 3,500, a public swimming pool, eleven hotels, a brewery, and received four trains a day from Kalgoorlie.

During the usual dry periods the dam level can range from half-full to nothing more than a stagnant puddle of muck.

However, for a couple of years after some good cyclone activity in the region the dam is a popular destination for its cool waters.