By the early twentieth century, Koolunga had a general store, a hotel, post office, butcher shop, town hall, church, and a garage.

[citation needed] However, by the end of the century, the general store, post office, and butcher shop had closed and been turned into residential properties.

[4] The main economic activities of the town and surrounding area are cereal and canola cropping, with sheep husbandry to a lesser extent.

Residents will typically travel to the larger towns of Port Pirie, Crystal Brook, or Clare for shopping and public services.

[citation needed] A large creature from Aboriginal mythology known as the bunyip was believed to have been sighted at a nearby waterhole in 1883, giving rise to the name.