The Taungurung people lived according to the natural cycles and rhythms of the land moving through their country seasonally, occupying the more cooler mountain areas in summer and autumn and the tributaries of the Goulburn River in winter and spring.

Trading routes passed through the area and much prized greenstone from a local quarry at Mt Carmel, about 30 kilometres (19 mi) north-west of Reedy Creek, was used to make axes.

Conveniently spaced camping places were used to make the journey along the trade route; from Gunn's swamp (now Waranga Basin) to the rock well at Whroo then to Lake Cooper at the foothills of the Mt Carmel Ranges.

Taungurung people also obtained quartz and silcrete for the manufacture of tools for hunting and food preparation from Mt Balck (within the Helathcote-Graytown National Park).

Today, Taungurung people still live on country and are active in the protection and preservation of their culture and land.

A hotel, church and blacksmith were set up, serving traffic traveling along the river system to Adelaide.

The Nagambie Lakes Regatta Centre is one of Victoria's major water sports facilities.

The town hosts the Goulburn Valley Vintage Festival in March each year, and the Shiraz Challenge in November.

Whilst the town has experienced a decline in traffic, there has been recent development of significant housing estates.