It is suggested that Nightcaps got its name either from the snow that is often seen on the Takitimu Mountains, or when early settlers observed fog on the hills known as the Nobbles.

[5][6][7] Nightcaps has a more industrial history than most Southland towns due to nearby coal deposits.

However, construction was approved in July 1919 with a deviation through Morley Village, considered part of Nightcaps.

The first section of the line, including the part serving Morley Village, opened on 1 September 1920.

[8][9] In 1980, the coal industry started to decline in Nightcaps, brought on by increasing automation of labour.

[12] Environmental organisations criticised this, with Forest and Bird requesting a judicial review stating that the Southern District Council did not adequately consider climate change in its approval of exploration for the expansion.

[13][12] That said, the applicable legislation is the Crown Minerals Act 1991, which does not cover climate change issue.

[14] The Takitimu mine currently produces around 200,000 tonnes of coal a year for domestic customers, mostly in food processing, including for export.

[15] Ohai-Nightcaps covers 948.80 km2 (366.33 sq mi)[1] and also includes Ohai, Wairio and Wreys Bush.