The town is located within the Shire of Moira local government area on the banks of Broken Creek and on the Murray Valley Highway.

Hotels, a post office (opened on 7 September 1878),[3] schools and churches followed and Nathalia was officially gazetted as a village in 1880.

The railway arrived in 1888, allowing local production to increase and a butter factory was established in 1895.

[5] Agriculture is the mainstay of the Nathalia area's economy, particularly cropping, dairy farming, and grazing.

Some of the town's major businesses are Rex James Stockfeed, Trans Tank International (TTi), Remax Products, and Ryan's abattoirs.

The national park is the world's largest redgum forest and is listed as a Ramsar site of international significance.