[2] It was founded by the Wodidj family, which left the area after a period of initial contact with white Australian settlers before World War II.

They left the area, with the men seeking work on cattle stations in northern Western Australia, returning to the nearby Port Keats Mission (now Wadeye) after the war.

They cut timber, built fences, dug trenches to pipe water from the creeks, and ran cattle which were sold to people at nearby communities.

The upper Victoria River exceeded major flood levels, and evacuations were ordered for residents of Daguragu, Kalkarindji, Pigeon Hole, and Palumpa.

[2] Palumpa Station continues as a proprietary limited company run by the traditional owners, with a new abattoir built in the 2020s, and is a major employer of local Aboriginal men.