The village is situated on the river's western bank near a junction with Nelligen Creek,[2] and 8 km (5 mi) inland from Batemans Bay.

[3][4][5] The original inhabitants of the land were Aboriginal people of the Walbanga, Murrinjari and Bergalia clans.

No bridges existed across the Clyde at the time, so produce and minerals from southern New South Wales were delivered to Nelligen for transport by twice-weekly steamer to Sydney; the town was serviced by the Illawarra Steam Navigation Company.

[5] By 1892 the population had grown to 500 but construction of several coastal bridges and the growth of Batemans Bay began to reduce local trading opportunities.

[8][9][10] A replacement bridge built by Seymour Whyte opened in February 2023 with the original demolished.