In 1920, the town-site of Narembeen only existed as a minor siding to the railway line that had only just been built to Emu Hill.

[4] By the 1920s Emu Hill was the largest community in the region but the local populace opposed the building of a hotel in the town.

As a result of this a Perth lawyer, Henry Dale and a publican, Paddy Conlon, purchased 30 acres (120,000 m2) of land at the railway siding of Narembeen to build a hotel.

In 1924, there were rumours that gold had been discovered close to the rabbit proof fence and the town of Holleton was established about 50 km from Narembeen, but Narembeen prospered as it was the closest train station to Holleton and offered a motor transport service to the miners.

In 1932 the Wheat Pool of Western Australia announced that the town would have two grain elevators, each fitted with an engine, installed at the railway siding.