The Mount Palmer Gold Mine operated from 1934 to 1944, when it closed due to labour shortages caused by World War II.

The town had three hotels, two-up rings, a bakery, butcher and two boarding houses.

A number of names were suggested for the townsite including Palmer, Palmerdale, Palmerston but these were rejected due to similarities with other places.

These men lived in rough humpies and tents near the mines, amid going concerns of a typhoid outbreak led the government to survey the townsite.

By the end of 1942 most of the men had left the mine to join the army with the work force declining to 60.